CHURCH LAUNCH — YOUR LEGAL ROADMAP TO STARTING A CHURCH

Launching a new church is a thrilling and challenging journey. The road from initial vision to launch Sunday consists of thousands of steps to build teams, create momentum, and raise necessary funds. At the same time, there are several legal steps that, while not as exciting, are essential to a successful launch.

Church Launch, powered by Reynolds Law Group, PLLC, is a turnkey program designed to take the headache out of the legal side of starting a new church. Church Launch partners with church planters to remove the stress of dealing with the IRS, help set up a strategic governance model, and ensure the church is protected from the start.

This is the first in a series of articles that equips church planters with a roadmap to successfully navigate the journey from vision to launch. In this initial blog, we’ll focus on the steps needed to create your church as a legal entity.

The Risk of Overlooking Legal Structure

Your church plant is more than a spiritual entity—it’s a legal organization. It’s vital to select the right legal structure from the beginning.

In nearly all cases, the appropriate structure is a nonprofit corporation, rather than a limited liability company (LLC) or an unincorporated association.

Why incorporation matters:

• Limits personal liability for officers, directors, and leaders

• Eases the path to tax-exempt status

• Creates a perpetual legal existence

• Builds credibility with banks and donors

• Enables property tax exemption in most states

By contrast, starting as an unincorporated association (the default until you incorporate) exposes church leaders to personal legal liability, provides less credibility, and may trigger property tax burdens in some states. Filing as an LLC isn’t recommended either, as it creates confusing tax classifications for churches.

Step One: Incorporate as a Nonprofit Organization

The first step on your legal roadmap is to form a nonprofit corporation. This action is typically completed in the state where the church will be located and creates your church’s official legal identity.

Incorporation involves filing Articles of Incorporation, which establish:

• Your church’s name and identity

• Its religious and tax-exempt purposes

• Basic governance structure

• Whether the church will have members

• How the board will function

Step Two: Secure Your EIN — Your Church’s Legal Identity Number

After incorporation, your church must apply for an Employer Identification Number (EIN) through the IRS.

Think of the EIN as the Social Security number for your church. You’ll need it to:

• Open a bank account

• Handle donations

• File for tax exemption

• Maintain financial transparency

Step Three: Adopt Strategic Bylaws

Once your church is legally incorporated, the next step is to adopt your bylaws—the internal rules that govern how your church functions.

Why Bylaws Matter:

• Define how decisions are made (voting, board structure, etc.)

• Clarify the roles of pastors, board members, and officers

• Set meeting schedules and financial oversight

• Outline membership policies and doctrinal statements

• Provide documentation the IRS often requires for 501(c)(3) status

• Legally protect your church by showing operational consistency

What to Include in Your Bylaws:

• Statement of faith or mission

• Membership criteria and rights

• Selection process for elders, deacons, or directors

• Voting procedures and quorum rules

• Fiscal year and financial accountability

• Dissolution clause (required for tax-exempt status)

These are the bare minimum requirements for sound bylaws. With Church Launch as your partner, you’ll receive a customized set of bylaws tailored to your theological and governance preferences—bylaws that are safe, strategic, and simple.

Step Four: Determine if You Need a Determination Letter from the IRS

By law, churches are automatically considered tax-exempt under IRS Code Section 501(c)(3). They are not required to apply for formal recognition.

However, many new churches still choose to apply for a determination letter to receive official confirmation of their tax-exempt status. Why?

• Easier to open bank accounts

• Smoother property purchases

• Stronger case when applying for grants or partnerships

Though optional, a determination letter often adds credibility and convenience.

Step Five: Understand State and Fundraising Compliance

In many states, churches must register before soliciting donations. Skipping this step can lead to:

• Penalties or fines

• Missed grant opportunities

• Legal challenges down the road

Taking time to understand and meet your state’s charitable solicitation requirements now can help your church avoid unnecessary setbacks later.

Strong Legal Foundations Protect Your Mission

Starting a church is a spiritual calling—but it’s also an organizational responsibility. A legally sound church can grow confidently, knowing the mission and its people are protected from avoidable legal complications.

Church Launch by Reynolds Law Group, PLLC

Turnkey legal support for new church plants—done right, from day one. To learn more about Church Launch, click the button below.