Steps to Start a Church in Texas
The Legal Stuff
I’m not an expert by any stretch of the imagination on this subject, however my husband and I were able to quickly and legally establish a church based on Prescott’s recommendation of incorporating early. We were able to have all our paperwork done & legally filed before we opened the church with the exception of steps 8 & 9 since the church has to be opened for those.
Before you get started it’s a good idea to get a corporate binder. This is where you will keep all the legal documents related to starting your church as well as your church board minutes.
If you have any questions or suggestions please email me, call me, or leave a comment below.
Thanks!
Melissa Canonge
361-777-6977
canonge2@gmail.com
1. Pick an Official Name
Once you have selected a name you need to check name availability.
Per The State of Texas –> The legal name of your nonprofit corporation may not conflict with any other registered name. Check availability of your desired name by conducting a name search.
We picked The Potter’s House Christian Fellowship Church of Corpus Christi. However that name had already been used by someone in Texas only without “of Corpus Christi” added. We ran into a snag and had to ask the 1st registered user of the name for permission. Not a big deal since we are part of the same fellowship & they gave us permission quickly. If that happens to you after the name search just have them fill out Form 509 & have it notarized.
Name Search:
Secretary of State database search or call (512) 463-5555 or e-mail corpinfo@sos.state.tx.us
*Honestly the fastest way for us was just to call in because we were able to ask them questions & figure out the next step quickly.
2. Select a board of directors
In Texas, you must have at least three directors on your board. Since you’re just starting out you will probably select an area fellowship pastor to be on your board.
3. Meetings & Minutes
In the corporate world (and with the IRS), a decision or change isn’t valid unless it’s been recorded in the board meeting minutes. Minutes protect your church. Make sure you record all major decisions in your board meeting minutes.
I have provided a copy of our initial board meeting minutes as an example/template for you.
4. Create Bylaws
I’m providing a copy of the bylaws provided to me by Marcy Sandoval. I’ve amended them for Texas. If you need them for another state please feel free to amend your copy. Marcy attended a meeting in Prescott explaining the need for scripture in your bylaws. The courts cannot interpret scripture. More Info
5. Create & File Certificate of Formation
Texas no longer calls this document the Articles of Incorporation, but that’s what they are. If you are eventually planning on applying for 501c3 status (Recommended by Prescott), then the copy I have provided has all the necessary language. But if you don’t plan on applying for 501c3 status then you can use the standard document Form 202 provided by the State of Texas. Just don’t use both…
6. FEIN
Go on the web and apply online at
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
You will complete the application using their form, or you may print and fax the form. If the application is faxed to the IRS, allow 4 working days for a reply.
Make sure to record your FEIN and keep it in a safe place with your corporate records. You will be asked for this number frequently.
7. Open a Bank account
Call your bank or credit union to find out their requirements. We use Navy Army Community Credit Union and they require the following:
Certificate of Formation
Certificate of Filing (State of Texas sends you this after you turn in your Certificate of Formation)
Bylaws
FEIN letter from IRS
Minutes – With signers first & last name, title, etc (everything on the minutes template I’m providing).
8. File for State Tax Exemption
After you’ve held your 1st few services, you can apply to be exempt from State Tax. Some people get this confused with 501c3 Federal Tax exemption which is a much lengthier and costly endeavor. This will provide tax exemption for hotels, any goods purchased for the church, church electricity bill, etc.
http://comptroller.texas.gov/taxinfo/taxforms/ap-209.pdf
Choose option B. It is much faster if you email the form to exempt.orgs@cpa.texas.gov with your supporting documents.
Below are the documents I sent along with our flyers.
9. 501c3
Sorry, haven’t done this yet. Check back every so often as we might do it soon. Or if you do it send me the info & I’ll post it.
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