Do you want to be an incorporated organisation?

Yes, we need to be incorporated and have limited liability (because, for example, we plan to employ people or own premises).

No, we don’t need to incorporate and have limited liability.

Incorporation means that an organisation becomes a legal “person” in its own right. This means that financial commitments are made (and risks are taken) by the organisation itself, rather than the individuals involved in it. In an incorporated organisation, the individuals involved are not personally liable should the organisation get into unmanageable debt, or be sued. (The people involved are still responsible for running the organisation properly).

Incorporation is a way of limiting risk for the people involved, but it can cause a lot more work. It requires a formal structure, so means more paperwork and legal responsibility. A lot of small organisations who are not taking much risk, (particularly those who don’t plan to employ anybody or take on any buildings leases), choose not to incorporate.

 

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Your route so far

Open group? No  Workers in control? No  Want to be a charity? Yes