Starting a business is often hard. Imagine how difficult it is for new business owners to develop a condominium.
Developers need to form a Condominium or Homeowners’ Association (HOA) in order to govern the process of condominium development. This is done even before any property in a condominium development is even purchased.
The Articles of Condominium, also known as the Governing documents, are there to protect everyone’s interests. That includes the developer and all future owners.
Unfortunately, the Articles of Condominium aren’t very easy to understand—especially if you haven’t read much about real estate law. So we’re here to help. Gudeman and Associates can provide the assistance you need when it comes to creating and filing effective Articles, Bylaws, CC&Rs, and Rules & Regulations.
We will help give confidence to you, the stakeholders, the lenders, the investors, and all forthcoming purchasers. And because these might intimidate new business owners, we’re here to tackle some of these concepts so you’ll know exactly why you need them.
Articles of Incorporation: What is it?
The Articles of Incorporation is just one of the governing documents included in the articles of condominium. Other governing documents included are the Bylaws of the Association; the Declaration of Covenants, Conditions and Restrictions, also known as the CC&Rs; and the Rules and Regulations.
Together, these governing documents help define the association: its functions and limitations.
The Articles of incorporation is a brief document that usually just contains the basic information about the Association. That includes its name, location, and purpose. It’s that simple. It’s a set of documents filed with a government body to legally document the creation of a corporation—and in this case, the Association.
Starting An HOA In Royal Oak and Beyond
The property developer forms a Condominium or Homeowners’ Association, and each purchaser of a property within the development automatically becomes a member of the Association.
By filing the Articles of Incorporation, the Association comes into being. Filing your Articles of Incorporation is one of the first and most important steps you need to do at the start of your business.
The Articles of Incorporation work in conjunction with the bylaws, as well as the other governing documents in order to form the legal “backbone” of your business. Bylaws help establish the roles and duties of the company’s directors and officers.
Although specific documents may vary by state, each will include a number of questions about the business and its owners. Forms are easily found online. Don’t be alarmed if they are called something other than “articles of incorporation”.
Expect these forms to ask pretty much the same set of questions, no matter which state you are from. It will be in a fill-in-the-blanks format. Be sure to provide the corporate name, recipient of all legal notices and official mailings, the purpose of the business, the duration of the business, the incorporator, the directors, etc. These are considered crucial information.
Once these documents have been filled out, they can be submitted by mail, in person, or electronically. Fees may vary per state.
Incorporation has a number of benefits, often reducing the risks that other business usually face. It limits your liability, it enhances your business’s credibility, and it even gives you a few tax benefits.
If you want to develop a condominium, it is also an essential step. Work with Gudeman & Associates today and we will provide the legal aid you need to help start your business empire.
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