can anyone help me figure out the steps an ensemble should take to become a 501(c)3 nonprofit? also, would we have to necessarily go to a lawyer? i found this website www.legalzoom.com that offers lawyer's services for a fraction of the price. has anyone on this forum used it? i am new to this, so any advice will be highly appreciated.

First you have to incorporate as a nonprofit in the state where you will have your primary business location. This does NOT require a lawyer - every state has a simple corporation application form to fill out and virtually every state charges under $100 to incorporate.

Once you are incorporated, you apply to the IRS for 501C3 status. The application is not terribly difficult but it would be a good idea to have a lawyer review it, if not actually prepare it. If you live in any decent sized city, there is bound to be some sort of nonprofit service organization who can either provide pro bono ("Free") legal help or legal help very cheaply for this exact purpose. The local United Way chapter could also help you.

It does take many months for the IRS to approve 501C3 status - it's not unheard of to wait for 6 - 8 months, minimum. There's also a fee for the 501C3.

Good luck!

There is a company in nyc that can act on your behalf to save actually becoming a non profit, there is a small fee plus I think they take 5%,
www.fracturedatlas.org

look under fiscal sponsorship...

Sorry...I didn't even see the "NYC" in your screen name!

Call Volunteer Lawyers for the Arts - they have an office in Manhattan.

In actuality you do not need to incorporate in the state where you will have your primary business location. Depending on where you plan to raise funds, you only need to apply for a DBA license in the respective state(s) you plan to operate.

At the very least, I strongly suggest retaining an accountant that specializes in working with nonprofits. If you have the funds available to you, hire a good attorney.

Drew

thanks everyone. this is plenty of information to get started.