TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
Thought this would be a good topic – explain what the difference is between the governing documents:
Articles of Incorporation –
aka: The Corporate Charter, Articles of Association
aka: Certificate of Incorporation
This document has the second in order of precedent and must be complied with unless it is in conflict with the CC&Rs or a State or Federal law.
This is a set of formal documents filed with a government body (Usually the State Corporation Commission) to legally document the creation of a corporation.
Incorporating an HOA/COA is not a requirement in all States
This document does the following:
a) Creates a separate legal entity recognized by the State
b) Identifies the name of the Company (typically HOA, Inc.)
c) Identifies the purpose of the Company
d) Identifies the initial board of Directors
e) Specifies the general purpose of the Association and type of business
f) Specifies the procedure to amend
Benefit of Incorporation:
a) Limits the liability of the membership
b) Required by some States in order to conduct business
References:
What does it mean to incorporate? from Bizfilings
Articles of Incorporation from invesopia
Differences Between Incorporated & Unincorporated HOAs
Advantages to Incorporating a Condo Association From a management company website
Articles of Incorporation –
aka: The Corporate Charter, Articles of Association
aka: Certificate of Incorporation
This document has the second in order of precedent and must be complied with unless it is in conflict with the CC&Rs or a State or Federal law.
This is a set of formal documents filed with a government body (Usually the State Corporation Commission) to legally document the creation of a corporation.
Incorporating an HOA/COA is not a requirement in all States
This document does the following:
a) Creates a separate legal entity recognized by the State
b) Identifies the name of the Company (typically HOA, Inc.)
c) Identifies the purpose of the Company
d) Identifies the initial board of Directors
e) Specifies the general purpose of the Association and type of business
f) Specifies the procedure to amend
Benefit of Incorporation:
a) Limits the liability of the membership
b) Required by some States in order to conduct business
References:
What does it mean to incorporate? from Bizfilings
Articles of Incorporation from invesopia
Differences Between Incorporated & Unincorporated HOAs
Advantages to Incorporating a Condo Association From a management company website