Incorporation terminologies

When Incorporating a nonprofit organization, you may encounter certain terms very frequently. A brief of these is mentioned below – 1. Shareholders – A shareholder is a person owning stocks in a corporation.A share holder may be entitled to voting rights and to dividends(in case of equity shares) or returns (for preference shareholders)in case of […]

Starting with the incorporartion procedure

Documents required for incorporating a nonprofit (get them handy to start with the formal incorporation procedure) a)Business Address – A complete business address – not just the post box number. b) Mailing address – if different from the mailing address c) Description of the activities of the proposed non profit organization. d) Personal Information – […]

Essential elements of a by law

The by law is a vital piece of document for managing the functioning of a non profit organization. The following  aspects of an organization’s by laws need to be looked into when drafting them at the time of incorporation of a non profit organization – A) Number of  Board members – The by law should […]

Where to Incorporate

Incorporation (both ‘for-profit’ and ‘non-profit’) is a subject of state laws. While the general principles and rules remain same throughout the states, there are some vital differences. For instance,  there are differences in the application process , the membership requirements, the filing fee and few other norms. The difference is more pronounced in the state […]

Exceptions to the limited liability clause

One of the most important benefit of Incorporation is that, its protects the individual members from being held personally liable for the the liabilities of the corporation. However in a few situations, Individuals involved with an incorporated nonprofit organization may be held personally liable for the liabilities of the organization. It is therefore imperative for […]