The Complete Legal List for Starting a New Church
Sep 24, 2025Starting a new church is a really rewarding job, but you have to be very careful with all the legal work you have to do to protect your ministry and help it flourish. A short legal checklist will help you save time, money, and trouble when it comes to obeying the rules and filling out forms.
This full list fits with the Tier 1: THE STARTUP PLAN, which is for churches with less than 900 members. It shows church leaders, pastors, and administrators all the legal steps they need to take to get started with confidence.
1. Decide what your church's mission and vision are
Make sure your church's mission is clear if you want to meet IRS regulations for nonprofits.
Write down your goals and vision to enable leaders and governors to make choices.
All of your papers should have the same mission statement.
Clearly expressing your goal at the start makes it easier to focus on your work, operate your ministry, and file legal papers. It also makes it clear to both your members and the IRS what your church is all about.
2. Choose a legal structure and create an LLC.
At the state level, you might choose to become a nonprofit.
Write Articles of Incorporation and transmit them to your Secretary of State.
Choose a church name that is both lawful in your state and not already taken.
Have a registered agent send you legal papers.
Incorporating the church makes it a legal entity and protects its leaders from being held personally responsible. This step is very crucial before you can apply for tax-exempt status.
3. Write down the church's rules and get them approved.
Write down the rules that explain what leaders, members, and meetings are supposed to do and how decisions are made.
Make sure to include regulations for running the business and settling disputes.
Hold an initial board meeting to approve the bylaws and pick the directors.
The rules of your church are like its constitution. They tell you how the church works and who makes the big choices. Well-written bylaws keep things in order and stop disputes from breaking out.
4. Get an EIN (Employer Identification Number)
You may receive an EIN for free from the IRS online. You need one to pay taxes and create a bank account.
A church's EIN is like a person's social security number. You need it for taxes, payroll, and banking.
5. Ask the federal government for tax-exempt status
Fill out IRS Form 1023 or 1023-EZ to receive 501(c)(3) status.
Prepare the Articles of Incorporation, the bylaws, and the financial forecasts.
Talk to a lawyer who knows about church 501(c)(3) compliance to make sure everything is right.
Because your church is a federal tax-exempt organization, it doesn't have to pay income tax. This means that people who provide money can deduct it from their taxes, which makes it easier to get donations.
6. Register with the local and state governments
If you need to, ask the state for a tax break.
Get a permit if you want to raise money for a charity.
Get any licenses or permissions you need for your business.
Following the rules of the state will keep you out of trouble with the law and help you gain the trust of contributors.
7. Set up the necessary financial systems
You can open a bank account for your church with your EIN.
Make sure you meet the rules by setting up bookkeeping and accounting systems.
Make sure that all donations, fees, and refunds are handled correctly.
Good money management protects your ministry and encourages honesty.
8. Decide how much the pastor will be paid and how much they will get for housing.
Make a plan for fair pay that respects IRS laws.
Make sure to give the right parts of the housing allowance and keep accurate records.
If you need help with the legislation, hire a lawyer who knows a lot about housing allowances for pastors.
If pastors and the church handle their money wisely, then both have reduced tax risk.
9. Set standards on how to handle risk
Write liability waivers for church events.
Get insurance that covers workers' compensation, general liability, and property damage.
Make regulations for volunteers and examine their backgrounds as needed.
Keeping your church secure decreases the chance of lawsuits and keeps people safe.
10. Stay on top of compliance and governance
Once a year, hold board meetings and keep track of what happens.
Send in the tax returns and annual reports that your state and the IRS need.
Make sure you still obey your rules and bylaws by checking them often.
Following the guidelines is something you have to do all the time to keep your church's tax-exempt status and legal health.
Why the STARTUP PLAN is the Best Option
For churches with fewer than 900 members, the STARTUP PLAN offers the following:
- Legal cuts and a $250 monthly credit for continuing to work in the legal field.
- You can get to the STRONGCHURCHES course and other resources that can aid you with your legal case.
- Email support that is always there and a network of church leaders and lawyers to help you.
This plan is an excellent balance between getting support from qualified people and without having to pay too much for it. You won't have to deal with legal problems on your own.
Conclusion: Use this list to start your business in a legal and confident way.
When you form a church, you need to follow the law to protect the mission and leadership of your ministry. The STARTUP PLAN and this checklist can help you lay the groundwork for your church's success.
Links inside
Other sites' links
- IRS EIN Application
- IRS Form 1023 Information
- ECFA (Evangelical Council for Financial Accountability)
Warning
This blog post is just meant to give you information and not legal advice. Reading this article does not make you a customer of Church Law and Strategy or its agents. Please go to a lawyer who is licensed if you need legal advice that is specific to your church or group.
