Thanks, Patrik. It does make a lot of sense to send out the initial form as soon as
possible. The additional statement within 90 days is most relevant to tax exemption
status.
It would be really helpful if there were minimum 2-3 people willing to volunteer to be a
part of this process and specifically be named. I have tried to present the legalese with
only the information we need to immediately proceed. I have also tried to make sure I have
not left anything essential out because an error in the formalities can invalidate the
whole incorporation effort.
There are two main things it seems to me we need to decide - (1) what to write in the
formalities part; and (2) who's willing to volunteer to be named.
If the nitty gritty of this stuff makes your eyes glaze over, viewer discretion is advised
for the more detailed explanation below.
Formalities
The Secretary of State's website has a useful page with Filing Tips. Here's the
link to the part specifically about domestic nonprofit corporations:
http://www.sos.ca.gov/business/be/filing-tips-corp.htm#artsnp. The minimum formality
requirements for the information that must be included are:
Corporate Name
Corporate Purpose
Service of Process
Corporate Addresses
Additional Statements
1 & 4 are very straightforward. Corporate name can include having to verify the
availability of the name and reserving the name, but I don't think this would
necessarily be relevant for Sudo Room. If someone is interested in taking the lead on this
step anyhow - the forms and instructions are at
http://www.sos.ca.gov/business/be/name-availability.htm.
So it seems to me that only 2 & 3 should necessitate some consensus decision-making.
Corporate Purpose.
We do already have several examples of our mission statement/purpose/basic description -
on the public website, wiki, and Articles of Association (by-laws). In modifying those
texts for this purpose, we do need to consider what aspects to emphasize, which is related
to the tax exemption status.
The filing tips page explains the relevance of "public" and/or
"charitable" purposes.
Item 2 [Corporate Purpose]: The statement of the
corporate purpose is required and should not be altered. If you are using Form
ARTS–PB–501(c)(3):
Item 2a: Check the applicable box to indicate whether you are organizing for
"public" purposes, or "charitable" purposes. Check both boxes if you
are organizing for both "public" and "charitable" purposes.
Item 2b: If you are organizing for "public" purposes, you must list the
specific purpose of your corporation. Note: If intend to apply for tax exempt status in
California, you should list the specific purpose of your corporation if you are organizing
for "public" purposes, "charitable" purposes, or both
"public" and "charitable"
purposes.
Agent for Service of Process.
The other piece of information that will require some coordination - at minimum
necessitate 1-2 volunteers to take on this role. The excerpted text below explains what
this is about and why it is important.
An "agent for service of process" is an
individual (director, officer or any other person, whether or not affiliated with the
corporation) who resides in California or another corporation designated to accept service
of process if the corporation is sued. Note: A corporation cannot act as its own agent for
service of process; only one agent can be listed; and the agent should agree to accept
service of process on behalf of the corporation prior to designation.
Board of Directors
The CA Corporations Code Sections 5120-5122 lays out the step-by-step requirements for
public benefit non-profits.
(
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=corp&group=05001-…)
Most relevant at this point is to be aware that there are two forks in what the people
named do functionally - either they are (1) incorporators in the case of a newly formed
corporation; or (2) they are officers or members of the Board in the case of existing
organizations.
5120(b). If initial directors are named in the
articles, each director named in the articles shall sign and acknowledge the articles; if
initial directors are not named in the articles, the articles shall be signed by one or
more persons who thereupon are the incorporators of the corporation.
For our
purposes of sending out the first part of the application right away, it seems worth
emphasizing that these are not necessarily the people who will be listed as the Board of
Directors in the Additional Statement (w/in 90 days).
Incorporating an Unincorporated Association
Section 5121 goes into even more detail if its an unincorporated association that is
formalizing incorporation status (which is our circumstance, though I'm sure we can
structure it differently if this poses a problem.
How and why this is the case is in (a)-(b) below (trimmed text for relevance).
5121(a). In the case of an existing unincorporated
association, the association may change its status to that of a corporation upon a proper
authorization for such by the association in accordance with its rules and procedures.
5121(b). ... the articles in the case of an incorporation ... shall set forth that an
existing unincorporated association, stating its name, is being incorporated by the filing
of the articles.
In this case, the Secretary of State requires there to be a
statement from current officers. We'll have to have volunteers for that instead or as
well.
5121(c). The articles filed pursuant to this section
shall be accompanied by a verified statement of any two officers or governing board
members of the association stating that the incorporation of the association by means of
the articles to which the verified statement is attached has been approved by the
association in accordance with its rules and procedures.
> On Oct 17, 2013, at 7:06 PM, "Patrik
D'haeseleer" <patrikd(a)gmail.com> wrote:
>
>> Do keep in mind that the first piece of paper work that has to go to Sacramento
only needs very minimal information: pretty much just the name of the organization, a
statement of purpose, and a contact person.
>>
>> After that piece of paper is in, I think you still have 90 days to file the
additional form with the bylaws and board of directors. So you might as well get the ball
rolling asap...
>>
>> Patrik