How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Loren Your Own Question
Loren, Attorney
Category: Legal
Satisfied Customers: 28537
Experience:  30 years experience representing clients.
Type Your Legal Question Here...
Loren is online now
A new question is answered every 9 seconds

I am a member of a bridge club that has essentially no assets

This answer was rated:

I am a member of a bridge club that has essentially no assets and no liabilities. Some members think we should obtain nonprofit corporation status under state law (although they can't offer any reason for doing so). Should we? What's the point?
Thank you for using JustAnswer. I am Loren, a licensed attorney, and I will do whatever I can to answer your question and provide excellent service.

There really is not a reason to incorporate unless your club is generating income and needs to file a tax return. The other reason to incorporate is so that the members are protected from civil liabilities against the club. I can not imagine what sort of claims a bridge club would generate to protect yourselves from.

Otherwise, with no assets or liabilities, no income and no claims, I do not see a reason presented why you would need to incorporate the bridge club.

I hope this is helpful. If you have more follow up questions please let me know. It is never a problem.

Thank you.

Customer: replied 3 years ago.

My understanding is that members couldn't be responsible for club liabilities anyway. Am I wrong?

No, that is correct. No liability for a general member who has no decision making authority.
Customer: replied 3 years ago.

1) What about a director's liability for a decision made by the board?

2) Given that our club has no assets, would incorporating provide any protection anyway? (I'm remembering doctrine about undercapitalization and "piercing the corporate veil.")

Generally, no liability for officers and directors without a showing of misconduct.

Unless, the club needs to enter into contracts with third parties, without assets or income, I do not see any exposure to liability to protect from.

Customer: replied 3 years ago.

Sorry--I wasn't clear. What if the club commits a tort (say a slip and fall in the hall negligently rented for a tournament)? Would incorporating protect the directors even if the corporation had no assets to cover the claim?

When you rent a hall the owner will make the club purchase liability insurance for the event. However, the directors would not normally have personal liability for any claims.
Loren and 3 other Legal Specialists are ready to help you

Thank you for your positive rating of my service to you. Let me know if you need more help or have future questions. I will be here for you. Just ask for me by name at the start of your question - "Loren" or use the following link (which you can bookmark in your browser):


Best wishes and good luck to you.

If it is not too much trouble, Charles, when you receive a Customer Satisfaction Survey from JA/Pearl in a day or two, please consider rating me highly (9 or 10). It affects my ability to continue to assist you and other customers on JA/Pearl and would be most appreciated.

Related Legal Questions