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Corporation Verses Association

Corporate Law Discussions

Corporation Verses Association

Postby Rodrigo » Fri Jan 30, 2015 4:19 am

I hope you can help me...or maybe you know someone who can.

I am the Chief of a volunteer fire department. Would it be better for us to be a corporation or an association? And what is the difference?

Thanks,

John
Rodrigo
 
Posts: 43
Joined: Thu Jan 02, 2014 11:09 am

Corporation Verses Association

Postby Amos » Sat Feb 07, 2015 4:04 am

JOHN,

What is a corporation?

A corporation is a separate legal entity. As such it allows a group of people to pool their energy, time, and money for profit or nonprofit activities. The corporation comes into legal existence when its founders comply with their state's incorporation process. A corporation is treated by the law as a separate "person," distinct from the people who own or manage it. The corporation can enter into contracts, incur debts, and pay taxes. Corporations can be set up as for-profit purposes or for nonprofit purposes. Legal Status of Corporation

Within the official framework, a corporation or in some jurisdictions a company, is a legal, artificial entity with or without shareholders, who may be humans, trusts or other corporations. When there are no stockholders this may be a non-stock corporation, a membership corporation or similar name - this second type of corporations are not-for-profit corporations. In either category, the corporation is a collective of individuals with a distinct legal status with special privileges that are not given to ordinary unincorporated businesses, voluntary associations or groups of individuals. Corporations are chartered by a state, and regulated by the laws enacted by that state. Its activities will generally be regulated by the law of the state in which the corporation operates, if different from the state in which it was formed.

[IF  YOUR  VOLUNTEER   GROUP  FORMS   A   CORPORATION,

YOUR  CORPORATION   WILL  BE  RESPONSIBLE  FOR  ALL  

LIABILITIES-----this  includes   individuals / groups/  others  who

put  a   claim  for   damages.

IF  YOU INSURE  FOR  THE  LIABILITIES,  YOU HAVE  TO

PAY  A  HUGE  ''PREMIUMS''.

=========================================

AN  ASSOCIATION  is

An organized body of people who have an interest, activity, or purpose in common; a society.

As  a   full  time  association,  engaged  in  humanity work  and  registered  as  such,

Your  associations'  liabilities  are covered  by   the  state,

where you  are  located.

=======================================

As   an  association,  you  are  also  eligible  for other  state  benefits  like

-tax  exemptions  on  the  purchase of  firefighting

equipments/ clothings etc.

ETC ETC

==================================

SO  FORMING  AN   ASSOCIATION  FAR

OUTWEIGHS   THE  CORPORATION.

regards

LEO LINGHAM  
Amos
 
Posts: 35
Joined: Sun Mar 02, 2014 3:02 am


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