Do You Need a Lawyer or CPA to Start a 501(c)(3) Nonprofit?A Practical Guide for New Founders

Starting a nonprofit is an exciting step toward creating social impact. Yet many founders quickly feel overwhelmed by conflicting advice — especially around whether hiring a lawyer or CPA is required to begin.

The truth is simpler than most people expect. While legal and accounting professionals play an important role in the nonprofit ecosystem, forming a compliant and sustainable 501(c)(3) starts with clarity, structure, and understanding the IRS requirements.

This guide explains the essential steps to start a nonprofit, when professional support is helpful, and why financial structure matters from day one.

The Core Requirements to Start a Nonprofit

Every U.S. nonprofit begins with a small set of foundational documents:

• Articles of Incorporation filed with the state

• Nonprofit Bylaws defining governance and oversight

• Conflict of Interest Policy required by the IRS

• Board of Directors with defined roles

• Employer Identification Number (EIN)

• IRS Form 1023 or Form 1023-EZ to obtain tax-exempt status

None of these steps legally require a lawyer or CPA. What they require is accuracy, transparency, and alignment between mission, activities, and finances.

Understanding IRS Form 1023

The IRS exemption application is not a simple formality. It evaluates:

• What the nonprofit does

• Who benefits from its programs

• How funds are raised and spent

• How governance prevents misuse of resources

Clear program descriptions and realistic financial planning are critical. This is where many founders benefit from guidance — not because the process is inaccessible, but because precision matters.

When Professional Support Is Helpful

Attorneys and CPAs can be valuable partners when nonprofits:

• Have complex governance structures

• Operate across multiple states

• Manage significant grants or restricted funds

• Engage in regulated activities

• Require contract or compliance review

Their role is to support founders — not replace the need for understanding how nonprofits function.

Why Financial Structure Matters Early

Nonprofit finance is not just bookkeeping. It is the system that protects:

• Donor trust

• Grant compliance

• Federal and state funding

• Long-term organizational sustainability

When financial systems are designed correctly from the beginning, nonprofits are better positioned to grow, pass audits, and deliver consistent impact to their communities.

Empowering Founders Through Knowledge

Most founders are capable of starting their nonprofit successfully when they understand:

• How governance works

• How finances align with programs

• How the IRS evaluates exemption applications

Education and access to accurate information reduce mistakes, delays, and compliance risks — benefiting not just individual organizations, but the broader nonprofit ecosystem.

Conclusion

Starting a nonprofit does not require navigating a maze of professionals — it requires clarity, preparation, and responsible planning. Lawyers, CPAs, and nonprofit specialists all play important roles at different stages, but informed founders are the strongest foundation for sustainable impact.

At Liveon Group Inc., we focus on helping nonprofits build strong financial and compliance frameworks that protect public trust and support long-term mission success.