As you prepare to launch your new church, you will need to complete a few key pieces of official documentation. For example, you must obtain an EIN and 501(c)(3) certification before you can open a bank account and receive donations. Getting the legal documentation set up can be confusing, but don’t worry, we’ve made it really easy. Just follow the steps below!

1. Select a Church Name
  • Before your new church can become official, it must have a name. Choosing a strong, thoughtful church name is important. Click HERE to download the article “How to Choose a Great Church Name” by Dr. Ed Love. Please keep in mind that this name will become your church’s legal entity name and changing it later can be difficult and time consuming.
  • You may register additional d/b/a (doing business as) names, but the legal name will always be required on all official and legal documentation. For example, “South Broad Ripple Community Church” may serve as the primary legal entity, with “SoBro Community Church” used as a d/b/a designation.

2. Establish an Address
  • If you do not have a permanent church facility, consider getting a P.O. Box instead of using your personal home address. In most areas, a P.O. Box is less than $100 per year. A church name is all that is needed for obtaining a P.O. Box. Some local mail shops are now offering P.O. Boxes with an actual address rather than a P.O. Box address.

3. Obtain an EIN (Tax ID)
  • An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a nine-digit number that the IRS assigns to business and nonprofit entities. The process of obtaining a Federal Tax Number is simple and FREE.
  • Click HERE to apply online via the IRS website. You must have an EIN number to establish a bank account and obtain status as a new church with The Wesleyan Church Headquarters.

4. New Church Registration Form and 501(c)(3) Certification
  • Once you have obtained an EIN, click HERE to submit your church information to the district office. The District Administrator will register your church with the General Secretary of The Wesleyan Church and input all information into TWCHub. The General Secretary's office will send the 501(c)(3) certification and IRS determination letter to the pastor’s attention at the church mailing address on file.  All Wesleyan churches operate under the tax exemption umbrella of The Wesleyan Church. The Wesleyan Church Corporation is the parent corporation. Our federal exemption operates under a group exemption.

5. Submit Church Treasurer and Additional Signatory for DBA Approval
  • In order to open a bank account for your new church, you will need to have a treasurer and an additional signatory appointed and approved by the Crossroads District Board of Administration. These individuals should not be related to you or each other, and should be trustworthy and dependable. If you did not submit these individuals on the New Church Registration Form above, their names must be submitted for DBA approval before a bank account can be opened. Once approved, you will receive the official DBA resolution required to establish the bank account.

6. Establish a Church Bank Account, Payroll, and Insurance Systems
  • Once you receive the 501(c)(3) certification and DBA resolution, you will be ready to open your bank account. Many banks offer a free (no fees) checking account to non-profit organizations. Some banks may require you to provide Articles of Incorporation, which you can obtain in Step 7 below.
  • Payroll and insurance are the less glamorous parts of the process, but that doesn’t make them any less important. Getting the proper systems for payroll and insurance early is key to a smooth start. For payroll, we recommend either Church Shield or Brotherhood Mutual. We also highly recommend Brotherhood Mutual for liability insurance.

7. Register with the Secretary of State to obtain Articles of Incorporation
  • In order to obtain Articles of Incorporation, you must register as a nonprofit corporation with the Secretary of State at this link: https://inbiz.in.gov/business-filings/registration
  • Once registered with the Secretary of State, it’s very important to stay current on your Business Entity Reports. These reports must be filed every two years for both nonprofit and for-profit organizations in Indiana. The individuals listed as officers or registered agents in your Articles of Incorporation are responsible for ensuring these reports are filed on time.

8. Register with the Department of Revenue and Apply for Sales Tax Exemption
  • In order to make tax exempt purchases, you must register with the Department of Revenue through INTIME (Indiana Taxpayer Information Management Engine), which can be done at this link: https://intime.dor.in.gov
  • Your 501(c)(3) certification and IRS determination letter are required when submitting the tax-exemption application (Form NP-20) through INTIME. When registering:
    1. Choose "Business Entity" for Customer Type
    2. Select "Other" for Customer Sub-Type
    3. Choose "FEIN" for ID Type and enter your Employer Identification Number (EIN)
    4. Do not select "Nonprofit." Instead, select WH-1
  • Once registered, log in, go to “All Items,” then click “Tax Registration” to submit the NP-20 application. Once your NP-20 application is approved by the state, you can request NP-1 certificates through INTIME to make tax-exempt purchases. The NP-20 application may take up to 48 hours for approval, with an additional business day for the vendor-specific NP-1 to be issued (although NP-1's are usually issued much quicker). Here are a few additional points to keep in mind:
    • Renewal: You need to renew the NP-20 every five years to maintain your tax-exempt status with the state. The Indiana Department of Revenue will notify you by mail when it's time to renew.
    • Vendor-Specific Certificates: Unlike the old ST-105 procedure, where the same form could be submitted to multiple vendors, you must request a unique NP-1 certificate for each vendor. The Department of Revenue issues these certificates within 24 business hours (although it's usually much quicker).
    • Proactive Requests: You may proactively request certificates for vendors you know you'll be doing business with in the near future (e.g., Amazon, Walmart, Sweetwater, etc). This way, you'll have them ready when you need to make a purchase. NP-1 certificates are good for up to 5 years from the date they are issued.

We hope these steps are helpful in getting your church started off on the right foot. Please contact our district office at [email protected] if you have any questions or need any additional clarification.