Incorporating To Avoid Liability
Posted by taxguru on May 19, 2005
Q:
Subject: IncorporationOur PTA is being asked by the local BSA to charter them. We are trying to get all information possible and someone suggested incorporation.Our main concern is “willful acts” and the liability taken on by the officers. Would incorporation be possible? How hard is it? How would this protect us?Who would this protect? Would a local PTA be able to incorporate?I hope you can help!
Thank you for your time!
A:
It sounds as if you need to be more concerned with the legal liability issues than any tax issues. Thus, this is out of my area of expertise.
While Nolo Press has some excellent resources for working with nonprofit organizations, it would a prudent move to consult with an attorney who is familiar with the liability rules for nonprofits in your state. They do vary in different jurisdictions.
Good luck.
Kerry Kerstetter
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