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Guest · 05-01-2009, 07:38 PM

Gerry,

My understanding is that as a simple association, you're in the same category as a partnership, and all members of the club are liable for the debts of the club.

Incorporating sets up the club as a legal entity, who would be solely responsible for its debts, and protecting the membership from being called on to pay those debts.

There is no real difference between a numbered corporation and one with a name, except that the latter requires a name search (about $35 a search or so). You can have it both ways, but it becomes cumbersome. The club name would become "Big Boomer Sailplane Club (12345678 Ontario Ltd.)" on all the lega papers as opposed to just 12345678 Ontario Ltd or Big Boomer Sailplane Club Ltd

In creating the corporation, you have to declare that the corporation will be not-for-profit (plowing excess funds back into the club for field acquisition/improvements is a valid item to the best of my knowledge and a common practice).

There's lots of information on the Government of Ontario Department of Corporate and Consumer Affairs on setting up corporations, especially not-for-profit ones.

Also lots of stuff on MPAC. Remember that MPAC is a provincial body, and independent of local municipalitieis. It's the local municipality that will send you a bill that you have to pay.

What I see as your priority items are:
1) Why did MPAC send you the bill and not the MNR, since you are a tenant?
2) Does your MNR permit actually make you the owner of the property, better check with MNR on this.

05-01-2009, 07:38 PM	#2
Guest Guest Join Date: Sep 2002 Feedback: 0 / 0% Posts: 0 Total Props: 57	Re: incorporation or numbersd co.? Gerry, My understanding is that as a simple association, you're in the same category as a partnership, and all members of the club are liable for the debts of the club. Incorporating sets up the club as a legal entity, who would be solely responsible for its debts, and protecting the membership from being called on to pay those debts. There is no real difference between a numbered corporation and one with a name, except that the latter requires a name search (about $35 a search or so). You can have it both ways, but it becomes cumbersome. The club name would become "Big Boomer Sailplane Club (12345678 Ontario Ltd.)" on all the lega papers as opposed to just 12345678 Ontario Ltd or Big Boomer Sailplane Club Ltd In creating the corporation, you have to declare that the corporation will be not-for-profit (plowing excess funds back into the club for field acquisition/improvements is a valid item to the best of my knowledge and a common practice). There's lots of information on the Government of Ontario Department of Corporate and Consumer Affairs on setting up corporations, especially not-for-profit ones. Also lots of stuff on MPAC. Remember that MPAC is a provincial body, and independent of local municipalitieis. It's the local municipality that will send you a bill that you have to pay. What I see as your priority items are: 1) Why did MPAC send you the bill and not the MNR, since you are a tenant? 2) Does your MNR permit actually make you the owner of the property, better check with MNR on this. Last edited by Guest; 05-01-2009 at 07:44 PM.