A not-for-profit convention is a racket protest formed for purposes other than to supply means for its owners. The Popular Not For Income Company Feature is legislation passed by the country authority of Illinois in 1986 that contains laws governing the formation and constitution of not-for-profit corporations. Organizations such as charities usually alter to not-for-profit corporations on account of these corporations are legal entities in their own hold together, notion they keep on to exist and impel as definite members come and get-up-and-go.
Formation
Peerless human beings over the generation of 18 may design a not-for-profit society. To design a not-for-profit gathering, you bear to string articles of incorporation with the government. Articles of incorporation are documents that must embrace particular advice, such as the alias of the firm and the stop of the convention, such as fundraising for a charitable mind. The articles must and incorporate the partnership's handle and the certified registered inscription of the business, along with the names and addresses of all community involved in forming the business. The articles can encompass counsel regarding the administration of the convention, including the course for terminating the association, and how the corporation's assets must be distributed on termination.
Office and Agent
A not-for-profit corporation must maintain a registered address in the state. This need not be the address of the corporation's principal place of business. The corporation must also name a registered agent, whose place of business is at the registered address. The registered agent and address are used for process serving. Because a not-for-profit corporation is a legal entity in its own right, it can not only acquire, hold and dispose of property, but it can also sue and be sued. All legal papers and processes are served upon the registered agent, at the registered address.
Annaul Report
All not-for-profit corporations must submit an annual report. The report must contain the name and address of the registered office and the name of the registered agent. A not-for-profit corporation that uses a name other than the name used in its articles of registration is guilty of a class C misdemeanor. The corporation can be penalized in this way as it is a legal entity in its own right. Officers or directors of not-for-profit corporations who fail to reply questions regarding the corporation, set by the secretary of state, or who knowingly file returns containing false information, are also guilty of class C misdemeanors. For instance, if you form a corporation in June, you must file an annual report each year within 60 days of the last day of June.
Legal Penalties
All corporations that do not file their annual reports on time must pay a penalty of $3. Corporations that fail to pay the required fee for name re-registration are given notice to pay the fee, and if the fee plus a $5 penalty remains unpaid 90 days after the notice is sent out, the corporation loses the right to use its name in the state of Illinois. The names and addresses of all the corporation's directors and officers must also be included in the report. The corporation's annual report contains information concerning the conduct of the corporation's affairs in the previous year, and the secretary of state uses the information in the report to determine the fees that the corporation must pay to the state. The annual report must be delivered within 60 days of the end of the anniversary month of the corporation's formation.
