Re: legal help needed - dissolving development corp
From: Jim Snyder-Grant (
Date: Tue, 12 Dec 2000 06:40:27 -0700 (MST)
New View (Acton MA) did this. The cost was somewhat less. We wrote up an
agreement between the dev corp & the condo association that the condo
association would agree to spend down the remaining dev money on a list of
dev-related items ("Exhibit A").   Then we transferred the money &
disssolved the dev corp. The issue was how to draft the agreement so that
the transfer of money did NOT entail a transfer of liability - the dev corp
was truely disappearing, not morphing. The lawyer thought that one issue was
how much money was being transferred, so we waited until the money was
'residual' - a few thousand out of the few million budget.

There's probably state laws involved & so I don't know if our paperwork
would be helpful.  Send me a self-addressed stamped envelope if you want to
take a look at them anyway.

-Jim Snyder-Grant
18 Half Moon Hill
Acton MA 01720

----- Original Message -----
From: "Denise Meier" <neesie [at]>
To: "Multiple recipients of list" <cohousing-l [at]>
Sent: Sunday, December 10, 2000 4:16 PM
Subject: legal help needed

We at Two Acre Wood want to dissolve the LLC (Limited Liability Company)
we formed to build this place, and transfer the responsibility for
finishing up the little items that are still outstanding to the HOA
(Homeowner's Association). Has any other group done this? We tried to
get some legal advice and ended up with an offer to write up a transfer
document at a cost of $3500 - $4000. This seems really high, and quite
possibly unnecessary.

I assume other groups had this structure and then dissolved it, even
though I know the LLC structure is relatively new. What we're trying to
understand is whether there is some legal protection the LLC offers us
that we are giving up by dissolving it, and whether we should keep it
around. I mean, it has to go away at SOME point, we can't keep it open
indefinitely (at $800 minimum corporate tax/year) - just for the purpose
of some vague liability protection.

Any comments or ideas?

Denise Meier

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