Cohousing-L Mailing List: Re: New Topic: LLC

[Ann Zabaldo (zabaldo]

Hi Crystal —

Now where was I …?  I banished the touch pad to the left side of the desk far 
from the keyboard …

Let me add to Alice’s points about why an LLC is an important tool for forming 
groups.

1.      An LLC adds legitimacy to the people you are marketing to — enrolling 
people into your community takes a big upswing when you “are” something.

2.      It is one of the steps that a group can take that shows it’s maturing 
as a group.

3.      It shows seriousness.  Not just talking anymore.

4.      It provides a base structure for your future governing documents or at 
least the basis for discussion about what your governing documents will contain.

5.      It forces you to be businesslike.  There are certain activities you 
have to do as an LLC and practicing these now — e.g. filing taxes, renewing 
your LLC, etc. is good discipline for the future running a community.  It helps 
you understand you are a BUSINESS as well as a community.


Regardless of where you are in the US, you can form your LLC in Delaware.  The 
state is totally set up for this.  You pay a state tax yearly.  And that’s 
about it.   You can find companies that will do everything for you — provides 
your registered agent, operating agreement, by-laws, files the request w/ the 
state, etc. for a flat fee of about $450.00.  Takes 24 hours.  It’s like a Las 
Vegas wedding or divorce — all set up …  we use Harvard Business Services for 
all our LLCs:  https://www.delawareinc.com/

Best --

Ann Zabaldo
Takoma Village Cohousing
Washington, DC
Principal, Cohousing Collaborative, LLC
Falls Church, VA
703.688.2646


> On Sep 1, 2015, at 8:04 AM, Alice Alexander <alicecohous [at] gmail.com> 
> wrote:
> 
> 
> Crystal, a succinct rationale:
> It costs very little to form an LLC (limited liability company which is a
> hybrid of a partnership and corporation) or to incorporate, and this
> protects your personal assets. It also lends legitimacy to your
> organization in the eyes of banks and other agencies.
> Alice Alexander, Coho/US Executive Director
> 
> On Mon, Aug 31, 2015 at 11:14 AM, Crystal Farmer <
> crystalbyrdfarmer [at] gmail.com> wrote:
> 
>> 
>> Hello everyone, we are working on forming our new community in Charlotte
>> and we have some questions from members about why we are forming an LLC. My
>> understanding is that we need an entity to hold the money we are collecting
>> and protect individual members from financial repercussions. Does anyone
>> have a good, short summary I can use at our next steering committee
>> meeting?
>> 
>> Crystal Farmer
>> Charlotte Cohousing Community
>> New website! www.cohousing-charlotte.com
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>> 
> 
> 
> -- 
> Alice Alexander
> Executive Director
> www.cohousing.org <http://www.cohous.org>
> [image: The Cohousing Association]
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