church-formation-services

Purpose

This guide compares professional services that help churches start, obtain 501(c)(3) tax-exempt status, and maintain ongoing compliance. While churches are automatically tax-exempt, many seek formal IRS recognition for credibility with donors, banks, and grant providers.

Why Use a Formation Service?

Benefits

Expertise: Avoid common mistakes that delay or derail applications
Time savings: Professionals handle paperwork and IRS communication
Approval guarantees: Most services offer money-back guarantees
Ongoing support: Help with compliance, bylaws, and policies
Attorney access: Legal counsel for complex situations

When You Might DIY

Very simple church structure
Strong legal/accounting background
Budget constraints (services range 3,000+)
Willing to spend 6-12 months learning the process

Major Formation Services Compared

StartCHURCH

Focus: Church-specific formation (not general nonprofits)

Experience: 20+ years, 19,000+ churches assisted

Headquarters: Lawrenceville, Georgia

Feature	Details
Main Package	StartRIGHT Service
Pricing	Contact for quote (varies by state/structure)
Guarantee	100% IRS approval or money back
Attorney Support	In-house attorney communicates with IRS on your behalf
Unique Features	Minister ordination paperwork included

What’s Included in StartRIGHT:

State incorporation (Articles of Incorporation)
Federal EIN acquisition
Customized bylaws
Board protection policies
501(c)(3) application completion
Minister ordination processing
Access to 5 software tools:
- Launch Suite
- Minutes Suite
- Policies Suite
- Tax Suite
- Exemption Suite

Best For: Churches wanting comprehensive church-specific support with ongoing software tools and minister ordination.

Contact: (770) 638-3444 | startchurch.com

Foundation Group (501c3.org)

Focus: All nonprofits including churches

Experience: 30 years (since 1995), 25,000+ approvals

Recent News: Joined BryteBridge to expand nationwide resources

Feature	Details
Main Package	SureStart™ (3 tiers: Good, Best, Complete)
Pricing	Contact for quote (tiered options)
Guarantee	100% IRS approval or money back
Staff	IRS-licensed Enrolled Agents and CPAs
Compliance	Ongoing bookkeeping and compliance services available

SureStart Package Tiers:

Tier	Includes
Good	Name verification, Articles of Incorporation, Bylaws, Conflict of Interest Policy, EIN, 501(c)(3) application
Best	Good tier + additional state filings and support
Complete™	Best tier + state tax exemption, fundraising registration, first-year Form 990, sales tax exemption, Kindful donor software (1 year)

Best For: Churches wanting established expertise with options for ongoing compliance and bookkeeping support.

Contact: 501c3.org

Charitable Allies

Focus: Nonprofit law firm serving all nonprofits

Experience: 2,000+ nonprofits nationwide

Model: Low-bono rates (half fair market value)

Feature	Details
Pricing	Packages starting at $1,550
Model	Nonprofit law firm (low-bono rates)
Consultation	Free initial consultation
Legal Support	Full attorney representation

What’s Included:

Articles of Incorporation drafting
Bylaws
Conflict of Interest Policy
Organizational actions
EIN acquisition
IRS Form 1023 filing assistance

Important Note: Churches are prohibited from filing Form 1023-EZ, so must use the full Form 1023 ($600 IRS fee).

Best For: Budget-conscious churches wanting attorney representation at reduced rates.

Contact: charitableallies.org

Whitfield & Associates (ChurchCPA.com)

Focus: CPA firm specializing in churches

Services: 501(c)(3) applications, church accounting, tax preparation

Feature	Details
Specialty	Church accounting and tax
Approach	CPA-led (accounting focus vs. legal focus)
Reviews	Mixed (some praise, some report communication issues)

Best For: Churches also needing ongoing CPA/accounting services.

Contact: churchcpa.com

Non-Profit Legal Center (T.S. Wrobel & Associates)

Focus: All nonprofits including diverse religious organizations

Experience: Worked with Buddhist, Hindu, Jewish, Islamic, and other spiritual organizations

Feature	Details
Specialty	Dual charitable/religious purpose organizations
Reviews	Positive reviews for personalized service
Diversity	Experience with non-Christian religious organizations

Best For: Non-traditional or multi-faith religious organizations.

Contact: nonprofitlegalcenter.com

Self-Service Platforms (LegalZoom-Style)

These platforms offer a DIY workflow where you answer questions online, and the service prepares and files your paperwork. Lower cost than full-service options, but less hand-holding.

LegalZoom

Model: Online questionnaire → LegalZoom prepares documents → Ships to you for filing

Package	Price	Timeline	Includes
Standard	$595	20-30 business days	501(c)(3) paperwork preparation
Expedited	$795	~7 business days	Same + priority processing

How It Works:

Complete online questionnaire
LegalZoom’s Peace of Mind Review™ checks for missing info
LegalZip® automation flags issues
Documents prepared and shipped to you
You file with IRS (or they assist)

Important Notes:

LegalZoom prepares documents but is not a law firm
Cannot provide legal advice or recommendations
If IRS rules require more detailed application, they offer 100% refund
Lifetime customer support included
IRS filing fee ($600) is separate

Best For: Tech-savvy founders comfortable with self-guided processes who want lower costs.

Contact: legalzoom.com

Bizee (formerly Incfile)

Model: Affordable online nonprofit formation with 501(c)(3) support

Package	Price	Includes
Silver	$0 + state fees	Name check, Articles of Incorporation prep/filing
Gold	~$149 + state fees	Silver + EIN, banking resolution, organizational meeting
Platinum	~$299 + state fees	Gold + business website, domain, expedited filing

Key Features:

Base rate for nonprofit formation: $49 (one of the lowest)
Automatically includes IRS 501(c)(3) required language in Articles
4.7-star rating on Trustpilot (19,000+ reviews)
1 million+ businesses formed since 2004

501(c)(3) Application:

Bizee focuses on state incorporation (first step)
501(c)(3) IRS application is an add-on service ($300-750)
You may need to file Form 1023 separately or use their add-on

Best For: Budget-conscious founders who want affordable incorporation and can handle IRS filing separately.

Contact: bizee.com

Rocket Lawyer

Model: Subscription-based legal services with nonprofit formation

Membership	Price	Benefits
Rocket Legal	$39.99/month	Document access, legal forms
Rocket Legal+	$239.88/year	First business registration FREE, 50% off 501(c)(3) services

How It Works:

Subscription gives access to legal document templates
Nonprofit formation included with membership
501(c)(3) application at discounted rate for members
Access to on-call attorneys for questions

Best For: Those who need ongoing legal document access and want bundled services.

Contact: rocketlawyer.com

Harbor Compliance

Model: Premium compliance-focused service

Service	Starting Price
Nonprofit Formation + 501(c)(3)	$1,699 + state fees
Registered Agent	$99/state/year

Key Features:

Full-service formation through tax-exempt status
Strong focus on ongoing compliance (licensing, fundraising registration)
Best for organizations planning to solicit donations across multiple states
Custom services for larger nonprofits

Best For: Churches planning multi-state fundraising who need comprehensive compliance support.

Contact: harborcompliance.com

Self-Service vs. Full-Service Comparison

Factor	Self-Service (LegalZoom, Bizee)	Full-Service (StartCHURCH, Foundation Group)
Cost	800 + IRS fees	3,000+
Guidance	Questionnaire-driven	Personal consultation
Church Expertise	General nonprofit focus	Church-specific knowledge
IRS Communication	You handle or limited help	Attorney handles for you
Ordination	Not included	Often included
Guarantee	Varies (refunds available)	100% IRS approval guarantee
Ongoing Support	Limited	Software tools, compliance help

Recommendation: If your church structure is simple and you’re comfortable with forms, self-service can save $1,000+. If you want hand-holding, church-specific advice, and guarantees, go full-service.

Service Comparison Summary

Service	Experience	Focus	Guarantee	Starting Price
StartCHURCH	20+ years	Churches only	Yes	Contact for quote
Foundation Group	30 years	All nonprofits	Yes	Contact for quote
Charitable Allies	10+ years	All nonprofits	N/A	$1,550+
ChurchCPA	Varies	Churches	N/A	Contact for quote
Non-Profit Legal	Varies	All nonprofits	N/A	Contact for quote

IRS Filing Fees (Separate from Service Fees)

Form	Fee	Timeline	Eligibility
Form 1023	$600	6-9 months	All churches (required for churches)
Form 1023-EZ	$275	2-4 weeks	Churches prohibited from using

Ongoing Compliance & Maintenance Services

What Churches Need After Formation

Annual Requirements
- Most churches exempt from Form 990
- Form 990-T required if unrelated business income > $1,000
- State-specific filings may apply
Ongoing Compliance
- Board meeting minutes
- Financial record keeping
- Policy updates
- Political activity restrictions
Available Maintenance Services
- Foundation Group: Bookkeeping and compliance services
- StartCHURCH: Software tools for ongoing management
- Charitable Allies: Ongoing legal counsel
- Various CPA firms: Annual tax preparation

State-Specific Considerations

California Example:

State tax exemption requires separate application (Form 3500 or 3500A)
Property tax exemption may require IRS determination letter
Churches exempt from CA Attorney General charity registration

Red Flags to Avoid

When selecting a formation service, watch for:

“Accountability Board” structures - Some services create boards that can remove the pastor, separate from the regular board of directors. Understand governance before signing.
Unusually low prices - If much cheaper than competitors, verify what’s actually included.
No guarantee - Reputable services offer money-back guarantees for IRS denial.
Poor communication - Check reviews for responsiveness issues.
No attorney or CPA access - Complex situations need professional guidance.

Alternative: Group Exemption

Instead of individual 501(c)(3) application, churches can:

Join an Association of Churches with existing group exemption
Affiliate with a denomination that provides coverage
Share tax-exempt status with a parent organization

Trade-offs:

Lower cost and administrative burden
Less independence in governance
Must follow parent organization policies

Recommendations by Situation

Situation	Recommended Service
New church, comprehensive needs	StartCHURCH or Foundation Group
Budget-conscious, DIY-comfortable	LegalZoom (49-299)
Budget-conscious, want attorney	Charitable Allies ($1,550)
Need ongoing accounting	ChurchCPA + separate formation
Non-Christian religious org	Non-Profit Legal Center
Multi-state fundraising planned	Harbor Compliance
Want questionnaire workflow	LegalZoom or Bizee
Joining denomination	Check denomination’s group exemption