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How much does it cost to start a nonprofit in each state?

Filing nonprofit articles of incorporation costs from $8 in Kentucky to $200 in Alabama, and most states charge between $20 and $60. The IRS charges a separate user fee to recognize tax-exempt status, $275 for Form 1023-EZ or $600 for Form 1023, the same in every state.

Nonprofit fees in every state

State fees for a nonprofit (nonstock or not-for-profit) corporation. "To file" is the articles of incorporation plus any fee the state requires with them. "Each year" is the state's report fee, with a report filed every two, four or five years counted at its per-year share. The state pages and the Rank table add the $275 IRS Form 1023-EZ fee to every nonprofit's start and five-year total; this table shows state fees only.

The cheapest and most expensive filings

Kentucky charges $8. Five states charge $20: Indiana, Iowa, Kansas, Montana and Michigan ($10 to file plus a $10 franchise fee). At the top are Alabama at $200, Vermont at $155, Pennsylvania at $125 (the same fee as a business corporation), Maryland at $120 ($100 plus a $20 organization and capitalization fee; nonstock corporations seeking 501(c)(3), (4) or (6) status pay an additional $50) and Delaware at $109 for a one-page certificate.

What happens each year

Twelve states list a $0 yearly report fee for a nonprofit: Alabama, Arkansas, Idaho, Iowa, Maryland, Minnesota (a free renewal), Montana (free between January 1 and April 15), New York (no biennial statement for nonprofits), North Carolina, Oklahoma, Pennsylvania and South Carolina. Three states collect a report less often than every two years: New Hampshire's renewal return is $25 every five years, Ohio's statement of continued existence is $25 within each five years, and Texas asks for a $5 periodic report at most once every four years. Washington reduces its fees for organizations certifying gross revenue under $500,000: $40 instead of $80 to file and $20 instead of $60 for the annual report. Vermont's $35 biennial report is $0 if no officer, director or employee was compensated in the prior year.

The federal step

Recognition under section 501(c)(3) comes from the IRS, not the state, through a separate application filed after the corporation exists: the IRS user fee is $275 for Form 1023-EZ, the streamlined form for smaller organizations, and $600 for Form 1023. Some state filings refer to it: Idaho says nonprofit articles must contain specific IRS language to qualify under section 501(c)(3), Oregon notes that charitable organizations also file annual reports with the Department of Justice and the IRS, and Nevada excludes qualifying 501(c) organizations from its state business license.

Common questions

What is the cheapest state to form a nonprofit?

Kentucky, at $8 for the articles of incorporation. Indiana, Iowa, Kansas, Michigan and Montana charge $20.

Which state charges the most to form a nonprofit?

Alabama, at $200. Vermont charges $155, Pennsylvania $125, Maryland $120 and Delaware $109.

How much does the IRS charge for 501(c)(3) status?

$275 for Form 1023-EZ, the streamlined application for smaller organizations, or $600 for Form 1023. The fee is federal and the same in every state.

Which states have no yearly report fee for nonprofits?

Alabama, Arkansas, Idaho, Iowa, Maryland, Minnesota, Montana, New York, North Carolina, Oklahoma, Pennsylvania and South Carolina list $0. Minnesota and Montana still require the filing; it is free when filed on time.

Which states file a nonprofit report less often than every year?

Alaska, California, the District of Columbia, Indiana, Iowa, Kansas, Nebraska and Vermont file every two years; Texas at most every four years; New Hampshire and Ohio every five years.