Cohousing-L Mailing List: RE: Incorporation questions

[Rob Sandelin (floriferous]

Heavens no. YOu don't become a condo until you actually build your homes.
You become a PUD in order to  do the development which you will do AFTER you
acquire a site. Until you acquire a site, you might want to explore what is
available under Texas law regarding partnerships. They are usually flexible
enough to be able to hold land title but each state has its own laws and
such and so you need to find out what kinds of incorporations that are
allowed by Texas law fit your needs.

You really have little legal exposure until you control land, and so a
simple partnership might be all you need. The disadvantage of a partnership
is that any legal judgement against you puts your personal assets at risk.
By being a corporate entity, or in some states, and LLC, you shield the
personal assets of the membership.

I am sure Austin is full of real-estate attorneys that for a couple hundred
bucks could advice you the best course under your local laws.

Rob Sandelin
Community works! Collaborative process consulting


-----Original Message-----
From: cohousing-l [at] freedom2.mtn.org
[mailto:cohousing-l [at] freedom2.mtn.org]On Behalf Of Jeff Kaufman
Sent: Thursday, July 06, 2000 7:30 PM
To: Multiple recipients of list
Subject: Incorporation questions


Good evening,

I'm working with a group trying to start up cohousing in Austin, Texas, and
I was looking at incorporation issues.  My understanding is that most
cohousing groups in the United States have incorporated either as
condominiums or PUDs.  Are there any advantages to either?

We are still somewhat in the embryonic phase with construction over two
years down the road.  We are, however, at the point where we'll be
collecting and spending money for studies, designs, etc.  Should we
incorporate as an Association in the meantime to deal with financial issues,
or should we look into incorporating as a condo/PUD immediately?

Your input would be greatly appreciated.

Jeff Kaufman
Central Austin CoHousing
Austin, Texas


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