When forming a not-for-profit business, you must give the company a name. In many cases, nonprofits are incorporated to provide protection to the company owners. This means that the not-for-profit must comply with the requirements set forth in state law for naming corporate entities.
An experienced attorney at Lotzar Law Firm, P.C. can help you to comply with naming requirements for your organization so you can get the nonprofit up and running as quickly as possible. Our attorneys can also assist with all other aspects of forming a not-for-profit entity. Call or contact us online today to speak with a member of our legal team and to learn more about how we can help.
Naming a Not-for-Profit
Not-for-profit corporations are subject to both the general rules for naming business organizations in Arizona as well as to the rules specific to nonprofits.
Corporation names must be distinguishable from other trade names and the names of other entities that are on file with the Arizona Secretary of State. If the name contains certain words such as Banking, Credit Union, Deposit, or Building Association, written approval must be obtained from the Arizona Department of Financial Institutions before it is permissible for the corporation to register.
Nonprofits also must satisfy requirements set forth in A.R.S. §§ 10-3401, 10-3301, and/or 10-11506. Under the relevant code sections:
- The name must not contain language that either implies or expressly states that the corporation is organized for a purpose other than the purpose permitted by its Articles of Incorporation.
- The name must be distinct from other corporate names, from LLCs, from foreign corporations, as well as from fictitious names of other businesses.
- The name must be distinct from Registered Trademarks.
The purpose of requiring a name that is different from other businesses and enterprises is to avoid confusion. Companies develop good will and their brands and names have a value. Nonprofits and other newly formed corporations cannot name their own enterprises after an existing business to capitalize on the other company’s reputation.
Naming a nonprofit is just one small part of forming your new organization. You also must determine the appropriate tax code to organize your business under and comply with all requirements for incorporating in Arizona and obtaining not-for-profit status from the Internal Revenue Service (IRS).
Getting Legal Help with Forming a Nonprofit Organization in Tucson
An experienced attorney at Lotzar Law Firm, P.C. can assist with the process of forming a nonprofit organization in Tucson and throughout Arizona from start to end. To learn more and to get help with getting your organization up-and-running, call or contact us online today to schedule a consultation with a member of our legal team.
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