• You are required set bylaws for the entity.law courts image by Peter Helin from Fotolia.com
  
  In California, the term nonprofit public benefit corporation refers to an entity which is formed to carry out activities that are not meant to derive profit. These activities may include helping the disabled or providing shelter to the homeless. Although they are not meant to make profit, there are rigorous registration and operational procedures that have been put in place.
  
  

Naming

• You must give your new entity a name. You will start by checking the availability of the name. The name you choose should not be similar to other names that have been registered. It should also not be deceptively similar to existing names, meaning that the name you choose should not be confused with an existing one. The name needs to be registered with the California Secretary of State office. When performing a name availability check, names are checked against similar entities. This means that the name you provide is only checked against names of non-profit entities registered in California and not against limited liability companies.
  
  

Directors

• You must have at least one director. The number of directors should be stated in the articles of incorporation or the organization’s bylaws. There is no age requirement for directors and they are not required to reside in the state. However, the law requires that interested directors can not make up more than 49 percent of the board of directors. Interested directors are defined as directors who can offer non-director services to the corporation and are paid for their duties.
  
  

Incorporating

• The articles of incorporation are filed with the Secretary of State. The articles must include the name of the corporation, the address from where it will be operating and the name of the registered agent. You should also include the duration of the corporation, the name of the incorporators and their address as well as the names and addresses of the directors. You are also required to include a statement of purpose for the corporation. This statement contains information on the purpose for which the non-profit corporation has been formed. It is required for the purposes of claiming tax exemption.
  
  

Bylaws

• You are required by California law to come up with bylaws which will guide the running of the non-profit corporation. You are not required to register the bylaws with the Secretary of State’s office but you must keep them in the corporation’s principal place of business.
  
  

Employer Identification Number

• You must apply for an employer identification number. This is a requirement for all entities that employ workers. The number is required both by the IRS and California. If you will pay $100 in wages you must apply for California employer number. This is required for the purposes of paying employment taxes.