What are the advantages of being incorporated?
Advantages to incorporation include: • providing a separate legal entity which can open bank accounts, enter into contracts, take out insurance, hold assets, etc. in its own right; • providing a certain amount of limited liability of individual members for actions of the incorporated association; • limiting the financial liability of the group’s members in respect of the debts of the group; • establishing clear aims and objectives which are included in the group’s constitution or articles of association; or • meeting the requirements of some funding bodies that only provide funds to an incorporated entity. There are other factors to consider such as: • the costs, both financial and administrative, of creating and maintaining the incorporated entity; • the risks associated with being a director or office bearer of an incorporated entity, risks that are similar to those of being a director of a company; • whether your group activities and experience may suit a less formal way of organisi
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