Cohousing-L Mailing List: Re: Early Bank Account Types for Explorer Membership Dues and Professional Fees

[Diana Carroll (dianaecarroll]

Well, for starters, because you aren't a homeowners association. :)

You will eventually have to form a homeowners association whose function is
totally separate and different than the function of an LLC (or, in general,
a group of developers, which is what you'll be at this stage).

Developers have risks that homeowners associations don't. (If you ever want
a long, sad story about risk, ask any of Mosaic's early members, but be
sure to offer a stiff drink in return.). In the very worst case scenario
(which is exactly what we faced), the developer/LLC can go bankrupt. But
the homeowners association just chugs merrily along.

On Wed, Feb 24, 2021 at 7:59 PM Lyn Deardorff <lynpeachtree [at] outlook.com>
wrote:

> Can you clarify why not Homeowners Association?
>
> Thanks!
> Lyn Deardorff
> Sand River Co-Housing
> Santa Fe NM
>
> -----Original Message-----
> From: Cohousing-L <cohousing-l-bounces+lynpeachtree=
> hotmail.com [at] cohousing.org> On Behalf Of Diana Carroll
> Sent: Wednesday, February 24, 2021 5:57 PM
> To: Cohousing-L <cohousing-l [at] cohousing.org>
> Subject: Re: [C-L]_ Early Bank Account Types for Explorer Membership Dues
> and Professional Fees
>
> Whatever you do, don't choose homeowner's association!
>
> We (Mosaic Commons, and by we I mean me as the bookkeeper/treasurer) had
> nothing but sorrow that resulted anytime there was any confusion between
> the developer organization that built the homes (which is, I understand,
> where you are at now), and the homeowners association that will eventually
> take over management from the developer. These two organizations might
> overlap in membership 100% but they are totally different legally, and just
> trust me, you will bring yourself nothing but pain if you mingle their
> finances in any way.
>
> (I can't tell you what to choose instead. I started with Mosaic shortly
> after the LLC formed. I can just steer you away from one bad choice. :) )
>
> Diana
>
>
>
> On Wed, Feb 24, 2021 at 6:16 PM Pare Gerou <paregerou [at] gmail.com> wrote:
>
> > Thank you Mark,
> >
> > When you got the EIN before becoming an LLC, did you classify your
> > group as a "Community or Volunteer" organization?  A Homeowner/Condo
> > Association?  A Nonprofit Tax Exempt organization?  There are many
> > other options (club....).  Do you remember what you chose and whether
> > it became a problem in any way?
> >
> > Pare Gerou
> > Greek Village Cohousing
> >
> > On Wed, Feb 24, 2021 at 9:47 AM Mark Owkes <mark.owkes [at] gmail.com> 
> > wrote:
> >
> > > Hi Pare,
> > >
> > > Congrats on getting your group started!
> > >
> > > My group opened a bank account before forming an LLC.  We got an EIN
> > > number from the IRS and that was all we needed to open the account.
> > > Running all the money through the cohousing bank account made
> > the
> > > finances very clear.
> > >
> > > Mark
> > > Bozeman Cohousing
> > > On Feb 24, 2021, 7:03 AM -0700, Fred-List manager
> > ><fholson [at] cohousing.org ,
> > > wrote:
> > > > Pare Gerou <paregerou [at] gmail.com>
> > > > is the author of the message below. It was posted by Fred, the
> > > > Cohousing-L list manager <fholson [at] cohousing.org> due to a format
> > > > problem.
> > > > ------------------- FORWARDED MESSAGE FOLLOWS --------------------
> > > >
> > > > Hello Everyone,
> > > >
> > > > Greek Village Cohousing has been at it now for 4 short months and
> > > > the interest is strong. I am collecting my first explorer dues,
> > > > and several more have requested explorer status this week. We are
> not yet an LLC.
> > How
> > > > did you bank the explorer dues, and group collections for use of
> > > > professionals, at the beginning of formation? I want to ensure I
> > > > am handling money responsibly and am perceived as doing so. I also
> > > > need to navigate personal liability when collecting money.
> > > >
> > > > Pare Gerou
> > > > Greek Village Cohousing
> > > >
> > > > _________________________________________________________________
> > > > Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> > > > https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fl.
> > > > cohousing.org%2Finfo&amp;data=04%7C01%7C%7Cfa2a7f3b6d7d4033dfc408d
> > > > 8d9283dd2%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C63749811415
> > > > 0216477%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMz
> > > > IiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&amp;sdata=CFvBLn6B5Ex193wG
> > > > BhnTpRG0EcL77tO2vSmTMaUhEio%3D&amp;reserved=0
> > > >
> > > >
> > > >
> > > _________________________________________________________________
> > > Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> > > https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fl.co
> > > housing.org%2Finfo&amp;data=04%7C01%7C%7Cfa2a7f3b6d7d4033dfc408d8d92
> > > 83dd2%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C63749811415021647
> > > 7%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTi
> > > I6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&amp;sdata=CFvBLn6B5Ex193wGBhnTpRG0Ec
> > > L77tO2vSmTMaUhEio%3D&amp;reserved=0
> > >
> > >
> > >
> > >
> > _________________________________________________________________
> > Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> > https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fl.coho
> > using.org%2Finfo&amp;data=04%7C01%7C%7Cfa2a7f3b6d7d4033dfc408d8d9283dd
> > 2%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637498114150216477%7CUn
> > known%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haW
> > wiLCJXVCI6Mn0%3D%7C1000&amp;sdata=CFvBLn6B5Ex193wGBhnTpRG0EcL77tO2vSmT
> > MaUhEio%3D&amp;reserved=0
> >
> >
> >
> >
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
>
> https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fl.cohousing.org%2Finfo&amp;data=04%7C01%7C%7Cfa2a7f3b6d7d4033dfc408d8d9283dd2%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637498114150216477%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&amp;sdata=CFvBLn6B5Ex193wGBhnTpRG0EcL77tO2vSmTMaUhEio%3D&amp;reserved=0
>
>
>
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> http://L.cohousing.org/info
>
>
>
>