Should I be concerned about liability as we are an incorporated association?

Question Details:

I am a member of a singles group. We post events on a social website. Membership in the group is not required to participate in events. I noticed that another group on this social website posted a disclaimer and waiver of liability on its website. Should I be concerned about liability as we are an incorporated association? If so, should be consider forming an LLC?

Asked 11/8/2009 under Business | 134 View(s) | More Legal Topics

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Business Law Answers

If your group is a not-for-profit, or even if it is a for-profit business corporation, there's no need to switch to an LLC.  You have the same protection of your individual members, from liability for the group's activities, with any of these forms of organization.

The LLC is a relatively recent innovation in the law.  It was created for situations where a traditional corporation would be inconvenient, for one reason or another, but the limited liability feature (that isn't present in a partnership) is still desired;  there's much less record-keeping involved, and the trade-off is that an LLC can't raise money by selling stock as a corporation can, because there is no stock.

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