Incorporating a bike club?

[Nokomis]

Thanks Irulan ~ that was perfect! And kudos for the work you & your club are doing.

[Irulan]

I forgot to add that incorporating most certainly does protect individuals in an organization. (IANAL usual caveats apply) In most cases, the orgaznization is sued, and the assets of individuals and individuals are protected in the event of a suit against the organization.

I don't recall all the details, but I went to a talk given by the former president of a club that had gone through a lawsuit. Having a solid organization made the difference in how far the lawsuit could go.

[velogirl]

gosh! I hope no one thought I was making light of your question. seriously, if your club is incorporated (whether or not they're a not-for-profit), you have a layer of financial protection (ie you probably won't lose your house or your kid's college fund if someone sues the club or you as a ride leader).

this question is posed every so often to the folks at USA Cycling -- "has there ever been a successful lawsuit against a coach or a cycling club?" we've been told there hasn't. that doesn't mean that someone can't sue you, but it probably means they won't win.

cycling is a risky activity. cyclists assume that risk when they hop on the bike. the few lawsuits I've heard of have been family members of those who were injured/killed in a cycling incident. those are the folks who don't understand the risk. I've also heard of one lawsuit against a club where a rider hit a runner on a multi-use path. I don't know the outcome of that case.

Irulan gave you great advice. as she said, every state is different. if you're truly concerned, check with the club officers to see if the club has liability insurance and if it covers the activities of members/volunteers.

[li10up]

Thanks everyone for the info. When I raised this question the current officers appeared to not want to talk about it...that is when I got concerned. I've heard we have some sort of insurance but I will check into that to make sure.

So can you incorporate without being a non-profit? How do you do that?

[velogirl]

incorporating (ie forming a corporation) is a form of business structure, just like an LLC (limited liability corporation) or a sole proprietorship. check with your state, but in CA you have to file with the secretary of state (initially to set up the corp and then annually).

becoming a not-for-profit is a completely different process. there are many different types of not-for-profits as well, depending on the mission of the organization.

[indysteel]

J- Check out the website for the Texas Secretary of State. It's a good source of information for information and forms regarding incorporation and NFP status.

[Irulan]

Thanks everyone for the info. When I raised this question the current officers appeared to not want to talk about it...that is when I got concerned. I've heard we have some sort of insurance but I will check into that to make sure.

wow that's kind of scary.

So can you incorporate without being a non-profit? How do you do that?

I believe so, the two are not intertwined.