Corporate structure is an important part of an organization's identity and longevity.
Limited Partnership
Limited Partnerships have some advantages: lower cost, less formal process.
One disadvantage: each time a member arrives or leaves, a new partnership agreement has to be executed.
Incorporation
There are different types of incorporation.
- Share capital incorporation may interfere with funding eligibility.
Not-For-Profit
Note, this is what hacklab.to is, as well as CLUE (linux.ca). I think we're leaning in this direction.
Leigh at hacklab.to has a nice writeup on how to setup a non-profit. It points to the Not-For-Profit Incorporator's Handbook, which I'll have to dig into (Michael).
Practical steps to incorporation:
Options for Getting Professional Advice:
- (Cedric) A local accountant, Lou Seguin, has offered to meet with the club to help inform the group on options. (His credentials include a 12 year stint with the CCRA as a Tax and SR&D auditor, KPMG as a tax professional, and his current practice as accountant and tax professional to various local small/midsized businesses.).
Comments (3)
Darcy Casselman said
at 11:55 am on Mar 20, 2009
I'm not too familiar with the details, but I'm pretty sure non-profits and not-for-profit corporations are different things, legally.
Evilshin said
at 2:34 am on Apr 8, 2009
I'm sure the "Limited partnership" is just a partnership. There are huge disadvantages. Including tying the personal finances of members to the finances of the partnership. It is not realistic to operate non-profit organizations as a partnership. It's the reason why partnerships rarely exist.
A non-profit corporation is what the rest of the world refers to as a co-operative.
I think this page needs serious vetting by a lawyer or a paralegal...
R. Brent Clements said
at 2:02 pm on Apr 8, 2009
The arguement of incorporation or not incorporation boils down to one fundamental fact about a "corporation". Regardless of any anti-capitalism sentiment or fear of the legal system, a corporation is one thing and one thing only. It is an entity that exists--has a documented existence in the eyes of the world--that is not specifically one or more persons. A charitable organization forms a not-for-profit corporation. Without that all we would be is the "Michael Hiemstra--Darcy Casselman--Brent Clements--etc."
That is all it means to incorporate. It means that our little dream here will exist as long as someone wants it to, because it is not under the control of anyone but its current membership. All of the legal protections it provides are important, but secondary to this basic fact.
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