Nonprofit corporations enjoy several advantages and protections such as, tax exemption, access to grants, and limited liability. However, your organization can forfeit its nonprofit status by failing to maintain the required corporate formalities, those requirements a nonprofit corporation must follow to be legally compliant as a registered entity in the state. Every year, many nonprofits are forfeited by the state in which it is registered for failing to maintain corporate formalities. You can avoid such fate. Texas nonprofit corporations are required to:
- Every four years, file an annual report with the Secretary of State that lists the corporation's registered agent and registered office and the names and addresses of all directors and officers.
- If the nonprofit has not requested or been granted an exemption, file a franchise tax report annually, by May 15, with the Texas Comptroller.
- Maintain a registered agent and office and if such information changes, file a statement of change of registered agent and/or registered office with the Secretary of State.
- If the nonprofit is a private foundation, file a Form 990-PF with the Texas Attorney General.
- If the nonprofit is dissolved, file Articles of Dissolution with the Secretary of State. (The directors and officers may still be liable for certain types of claims if the nonprofit is not formally dissolved).
