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An unincorporated association can be a charity, but it does not have to be.An unincorporated association is not incorporated, so it cannot enter into contracts or own property in its own right. To set up an unincorporated association, all you need to do is write and agree a constitution in your group.
In order to form a nonprofit corporation, you must file articles of incorporation (sometimes called a "certificate of incorporation" or "charter document" or "articles of organization") with the state and pay a filing fee.
To set up an unincorporated association, all you need to do is write and agree a constitution in your group. If you do not plan to become a charity, your constitution should lay out whatever aims you want for your group.
Broadly, articles of incorporation should include the company's name, type of corporate structure, and number and type of authorized shares. Bylaws work in conjunction with the articles of incorporation to form the legal backbone of the business.
Nonprofit incorporation usually involves these steps: Choose a business name that is legally available in your state and file for an EIN (Employment Identification Number) Prepare and file your articles of incorporation with your state's corporate filing office, and pay a filing fee.
Legal Name of the Organization (Not taken by other companies in your State) Address of the Organization (Should be in the Incorporating State) Incorporator of the Nonprofit Organization.
The name of your corporation. your corporation's principal place of business. the name and address of your corporation's registered agent. a statement of the corporation's purpose. the corporation's duration. information about the number of shares and classes of stock the corporation is authorized to issue.
An unincorporated association serving in a volunteer capacity for the public good is considered an unincorporated nonprofit association. These organizations do not have to pay taxes or file a tax return if they have no more than $5,000 in revenues.
Whenever two or more people decide to work together to accomplish a common purpose, they've formed an unincorporated association. If that purpose is to generate a profit, then the unincorporated association they've formed is a partnership or a joint venture.