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Old October 16th 03, 07:53 AM
Casey Wilson
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corporation.

That's one of the reasons I incorportated as a Mutual Benefit vs. a
for profit company (remember that not for profit != charity ).


Once again, I preface my comments with the caveat that I am not
qualified to offer any legal advice.
I did some skimming through the California Corporations Code because I
was not familiar with the term "mutual benefit.' What I found was that the
two words are tied to 'nonprofit' as in 'nonprofit mutual benefit
corporation.'
In the definition of that type is the excerpt: "...a corporation may be
formed under this part for any lawful purpose; provided that a corporation
all of the assets of which are irrevocably dedicated to charitable,
religious, or public purposes..."
I am somewhat familiar with nonprofit corporations, having spent a dozen
or so years on a variety of 501(c)(3) corporate boards and five years as
corporate president of one. I am perplexed by at least two things.
First, I don't understand your statement above. Not for profit
corporations and charities are not mutually inclusive.
Second, I get the impression that you formed mututal benefit corporation
and transferred title of some asset(s), perhaps an airplane, to the
corporation in some attempt to shield it/them from California's oppressive
Revenue and Taxation Code. I hope that works out okay for you.
Reread my caveat, then let me say that, to the best of my knowledge, the
California Attorney General's office relies on the federal Internal Revenue
Service to provide a letter of determination that a corporation meets the
statutory standards for a nonprofit organization. It sounds like you need to
have the Attorney General's office send a copy of the determination to the
revenue and taxation guys.

Regards,

Casey



 




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