Starting an Unincorporated Nonprofit
Association
Click here to read
HB
3108 passed by the 2003 Legislature
which changed some of the Corporate Laws.
Steps to Start the Association
Click on the number if you need more information
about that step before you complete your new company's Statement
of Registration. If you are ready to file, go straight to
Step
3.
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Organization:
Determine the long-range goals of your association to decide
how your association will be run. |
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Agent of Process: Determine who will serve as the agent
for service of process for the company. |
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Filing with Secretary of
State: Notice of the
appointment of your agent of process must be filed with the
Secretary of State. |
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Filing in the County:
If your association will own property in one or more
counties in West Virginia, county filings will be required. |
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Next Steps: Complete
other state, county and municipal filing requirements before
you start business. |
| 1 |
Organization
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The law does not set detailed guidelines for organizing
an unincorporated nonprofit association, as it does for a
non-profit corporation.
- A sound agreement in writing which details what
officers will be elected and when, how members may join,
and how decisions are made will help insure the
long-term success of the association.
- One or more persons must be authorized to conduct the
business of the association, in order to make the
necessary filings.
- If real property will be owned by the association,
specific officers or members must be identified who will
have authority to handle any property transactions.
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| 2 |
Agent of Process
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Determine who will serve as the agent
for service of process -- the person who
will receive certified mail on behalf of the association in case of a legal action.
The agent must be listed with a physical address in West
Virginia where mail
can be received (not a post office box), and may be either:
- an individual resident of West Virginia;
- a company authorized to do business
in this state (including a corporate service
company).
The agent must be someone you trust to notify you immediately should a
legal action be filed against the corporation. Do not
name a person or company which has not consented to act in
that capacity.
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| 3 |
Filing
with Secretary of State
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Unlike other business structures,
unincorporated nonprofit associations do not file regular
statements of registration, but must file an appointment of
agent for service of process with the Secretary of
State. That appointment is made by letter, and must
include:
- The name and address, including street address, of
the association (A West Virginia unincorporated
nonprofit association must have an office address, but it is not required to be within the state.
If the association does not have its own building address, the
one of the members or officers may be willing to handle the
mail.);
- The name and address, including street address in
West Virginia, of the agent of process;
- The signature of the agent agreeing to act as agent; and
the signature of a person authorized to conduct the business
of the association.
- The fee for filing is the same as the fee for agent change
-- $15.
- See
Ordering
& Payment for more information about filing.
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| 4 |
Filing
in the County
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A filing, called a "statement of authority,"
may be filed in any county where real property is owned by
the association. This statement would have to be on
file before any transfer of property could be recorded.
West Virginia
Code 36-11-5 spells out the requirements for the county
filing.
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Next
Steps
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As with other organizations,
there are a few more steps before you start operation.
Even though this type of association is non-profit, you must
have a business license.
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Complete the
Business
Registration Application for filing with the
Department of Tax and Revenue. This form is a combined form which will allow you to
obtain your business franchise certificate and complete
initial registration to comply with unemployment and
worker's compensation requirements in case the
association ever has employees.
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Determine whether any other state licenses are required
for the type of activity you do. For
example:
-- if the association will solicit contributions in West
Virginia, a
charitable
organization registration will probably be required;
-- if the association conducts community activities
involving health, food, education or child care
activities, some permits may be required.
- Some of the most
common licenses and permit requirements are listed for
your convenience with links or contact information for
the agencies which issue those licenses or permit.
Go to:
Professional & Occupational
Licenses or
Other Licenses and Permits. You may need to
make inquiries to find other licenses.
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Licenses or registrations to do business may be required
at the county or city level, especially in counties
where your association provides services to the
community or solicits door-to-door. Contact the
County
Commission for county requirements, and the
City
Clerk for municipal requirements.
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