How to start a chamber of commerce

Step 1 — Establish that there is a business community to serve

A chamber of commerce is a membership organization funded by the businesses it represents. Before any paperwork, the practical question is whether enough local businesses will pay dues to sustain it. Most new chambers begin with a founding group of committed businesses who commit to membership before incorporation.

This step has no legal component, which is precisely why it is the one most often skipped. Incorporation is cheap and fast; sustaining an organization without a dues base is neither.

Step 2 — Incorporate as a nonprofit corporation in your state

Chambers are almost always incorporated as nonprofit corporations at state level. You file articles of incorporation with your state — usually with the Secretary of State — naming the organization, its registered agent, its purpose, and its incorporators.

Requirements, fees, processing times, and the minimum number of directors vary by state, and there is no national filing that substitutes for it. Check your own state office rather than a general guide, including this one.

Step 3 — Get an EIN from the IRS

An Employer Identification Number is the organization's federal tax ID. It is needed to open a bank account, to hire staff, and to file anything with the IRS. It is obtained from the IRS directly and is not a grant of tax-exempt status — the two are frequently confused.

Step 4 — Adopt bylaws and seat a board

Bylaws set out membership classes and dues, how directors and officers are elected and removed, meeting and quorum rules, terms of office, conflict-of-interest policy, and how the bylaws themselves are amended.

This is the step that later determines whether the organization can pass a financial audit or an accreditation review, so it is worth doing properly rather than adopting a template unread.

Step 5 — Decide whether to seek IRS recognition as a 501(c)(6)

The IRS treats chambers of commerce as business leagues under section 501(c)(6). Organizations that want a determination letter apply on Form 1024, which must be submitted electronically through Pay.gov with the applicable user fee.

The Form 1024 instructions note that certain organizations are not required to apply for tax-exempt status but may wish to file to receive a determination letter. Whether that applies to your organization is a question for a tax professional — do not assume it either way.

Read the 501(c)(6) guide →

Step 6 — Set up operations before you recruit

A chamber that recruits members before it can invoice them, list them, or run an event tends to lose the founding cohort it worked hardest to get. Membership records, dues invoicing, a public directory, an events calendar, and a website are the operational floor.