From Idea to Incorporated: Our Texas Certificate of Formation, EIN, and First Bank Account
October 5, 2026 · ACHONU Foundation
We had spent enough time saying we were going to start ACHONU. The turning point was simple: we opened the filing form, set aside $25, and decided the idea needed a legal home.
This is our experience, not legal or tax advice. Check with the IRS, your state, or a qualified professional.
First, the certificate of formation
If you are searching for how to start a nonprofit in Texas, this is where the legal process begins.
A Texas nonprofit corporation is created by filing a Certificate of Formation with the Texas Secretary of State. The nonprofit version is Form 202.
The filing fee is $25. For a mailed filing, payment can be made by check or money order payable to the Secretary of State. Online filings can be paid by credit card, with a 2.7% convenience fee.
Each organizer must sign the certificate. The form can be submitted in duplicate by mail to:
Secretary of State
P.O. Box 13697
Austin, TX 78711-3697
It can also be filed through the Secretary of State’s SOSPortal.
For us, it took about three weeks for the Texas Secretary of State to return our filed copy.
This step mattered because it made the organization real under Texas law. It did not, however, make ACHONU tax-exempt.
A Texas nonprofit corporation may not distribute income to its members, directors, or officers. But filing the certificate is only state formation. Federal tax exemption is a separate process. State nonprofit status and tax exemption are not the same thing.
Then the EIN, and never pay for it
After the entity was legally formed, we applied for an Employer Identification Number, or EIN.
Every nonprofit needs one, even if it has no employees. The EIN identifies the organization to the IRS.
The EIN is free. If the principal place of business is in the United States or a U.S. territory, and the responsible party has an SSN or ITIN, the online IRS application can issue the number immediately.
There are other options. Faxing Form SS-4 to 855-641-6935 generally takes about four business days. Mailing the form to Cincinnati generally takes about four weeks.
The order matters. The IRS says not to apply for an EIN until the organization is legally formed. There is also a limit of one EIN per entity per day.
And plainly: never pay a third-party website for an EIN. It is not a tax-exempt number. Tax exemption must be handled separately.
Then the bank account
With the filed certificate and EIN assignment letter in hand, we could approach a bank.
Banks generally want the filed Certificate of Formation and EIN assignment letter. We chose a bank that works with small nonprofits, and they also asked for a board resolution naming the people authorized to sign on the account.
The lesson was practical: do not try to open the account before the organization has its EIN. Keep the legal name consistent across the formation document, IRS application, board resolution, and bank paperwork.
What we’d do differently
File the formation before applying for the EIN. The sequence protects against mismatched records.
Keep one organized folder. Ours should contain the filed certificate, EIN letter, and board minutes.
Do not confuse incorporation with tax exemption. Formation creates the entity. It does not finish every compliance step.
If you are building a mission with long-term reach, the paperwork is not the mission, but it gives the mission a structure that can be accountable.
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This is our experience, not legal or tax advice. Check with the IRS, your state, or a qualified professional.