Cohousing-L Mailing List: RE: legal help needed

[Rowenahc (rowenahc]

This is the kind of thing that needs advice from a lawyer familiar with your
state's law.  In the Commonwealth of Massachusetts, if you fail to file your
corporate annual report you cease to have a corporation - you don't have to
do anything formal.  And our condouminium documents state that when all (or
most) of the units are occupied the association takes over the rights and
responsibilities of the developer, which is more or less required under the
statute.  There maybe something like this in your state.

The estimated cost of tying up these loose ends sounds a bit high - you may
want to talk to other attorneys.

-----Original Message-----
From: cohousing-l [at] freedom2.mtn.org
[mailto:cohousing-l [at] freedom2.mtn.org]On Behalf Of Denise Meier
Sent: Sunday, December 10, 2000 4:17 PM
To: Multiple recipients of list
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?

Thanks,
Denise Meier