“Why or why not should one be incorporated?” is the question American lawyer Don Kramer asked in his Weekly E-Newsletter back in 2010.
For Mr. Kramer, the question is a legal one. The pros and cons that he outlines deal with personal liability and procedural/substantive questions. His fantastically succinct answer refers to state statute and case law.
For some, incorporation is relevant not because of legal concerns but rather taxation benefits. Others might contemplate incorporation through the lense of fundraising and its effects on donors. And yet to others, the act of incorporation or registration is simply a question of time and money — lacking either of the two might automatically render incorporation as an unwarranted expense.
As a banker, and more specifically, as a banker that deals with international nonprofits, I’m interested in easing a charity’s ability to open and manage a bank account.
So like any good Jew, I’ll answer a question with a question. When seeking to solve the riddle of “Should I incorporate?” I ask the following: Will your charity operate internationally?
If the answer is yes, then incorporate. It will make banking a whole lot easier.