[sac-board] Re: SAC Constitution and Proposed Amendment 2.0

With regards to liability, the general membership isn't really at risk - just 
the officers.
Incorporation shields the officers from personal liability by creating a legal 
entity.

Actually, incorporating in Arizona is a lot less expensive than that. It will 
cost you $10 to
reserve the corporate name for 120 days. The fees are $60 (only $40 for a 
non-profit). It will cost
$10 annually to file the required annual report with the ACC. No, it isn't very 
hard at all - it is
more just assembling existing/known data into the application. The result is a 
non-tax-exempt
non-profit corporation. A non-profit corporation is still required to file an 
income tax return with
the IRS annually.
Another possibility is concurrently filing for a 501(c)(3) exemption of the IRC 
(done through the
IRS). This will cost around $500 and is a little more involved than 
incorporation (it is the federal
government, after all). The result is a tax-exempt non-profit corporation. This 
situation would be
very advantageous for a club like SAC.

Peter    

-----Original Message-----
From: sac-board-bounce@xxxxxxxxxxxxx [mailto:sac-board-bounce@xxxxxxxxxxxxx] On 
Behalf Of Stars
Sent: Tuesday, July 19, 2005 7:25 AM
To: sac-board@xxxxxxxxxxxxx
Subject: [sac-board] Re: SAC Constitution and Proposed Amendment 2.0

The only true way to truly protect the board members and general members would 
be to incorporate the
club as a non-profit origination. The cost of doing this should be around 
$500.00  The paperwork is
not that hard.  I did all the paperwork myself to incorporate my business.  I 
don't think that a
non-profit corporation is much different.  SAC already has an established name, 
so getting a
registered name for the club should cost only about $15.00 if I remember 
correctly.  I did mine
through the Department of State of Arizona.  Once you have a registered name, 
you file the
corporation paperwork, cost around $120.00, wait for a reply, then publish the 
corporation paperwork
in one of the news-papers and send the certification of publication to the 
state.  Since I already
had my trade name registered, it took less than 90 days to do. If everything is 
done correctly, you
will receive your notification from the corporation commission that you are now 
incorporated.  You
have to file a corporation report each year, stating any change in officers or 
status of the
corporation.  It will be paperwork, but again it is not all that complex.  The 
state's corporation
has all the forms that are needed on there web site with instructions.  This 
only has to be done
once. This is one of the easiest states to incorporate in. 

This would mean no wavers to have to attend with, and the board and members 
would be protected.  Yes
the club could still be sued, but only for it's assets. 

If what you are trying to accomplish is to protect the club, there is no better 
way that I am aware
of.

Tom Hilton

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