PRELIMINARY REPORT ON INCORPORATING THE IJA by Dennis Soldati (Aug. 1, 1974)

International Jugglers' Association, Inc. (?)

I'm not ready yet to give you all the information on incorporating the IJA. I have at least three people I still want to interview. However, my preliminary findings for New York state are based on $ 1,000.00 capital and six share holders (the more share holders, the more expensive). The six represent the Executive Committee, for if each of our 200 members were share holders, the cost could be prohibitive.

                                                   State gets              $ 60

                                                   Book                          25     (share holders)

                                                   Lawyer gets           $ 200

                                                   Total                       $285

                                           Plus $125 each year to renew with state.                    

The book and lawyer are approximations. The $ 200 for the lawyer, I've been told, is a

rockbottom price. In fact, he'd have to be a friend and be doing you a favor.

But, I ain't through yet. There are many pros and cons. It may be cheaper and easier in another state. Maybe the IJA would choose to elect one share holder (if it was cheaper). Maybe we can get some "favors" from business. Maybe we can do it ourselves without a lawyer. Maybe it's worth it, maybe it's not. That's the question. I still have some lawyers to talk to, and an appointment with the Small Business Counsel. When I get some answers, I'll make a full report.

SEMI-FINAL REPORT ON INCORPORATING THE IJA by Dennis Soldati (Aug. 23, 1974)

At the present time, to incorporate the IJA would be costly without offering any real protection or advantage to the members.

By incorporating, a company secures protection for its stock holders. In case of a law suit, etc., the company is only liable for the amount invested; individual stock holders can not be touched by any legal action.

However, the IJA would be incorporated as a non-profit organization (without stock holders) but would still have to pay taxes and pay to have someone make out and file the tax returns.

The cost of incorporating is almost the same in all states, so no advantage can be gained by going out of New York state. Although now, I think it's possible to have the whole thing done for $ 200 or less (maybe much less .for the IJA).

If the IJA was incorporated and owned its own building . . . and if someone was hurt in that building, they would sue the corporation, not the members. Also, if a member of the IJA signed to hire a hall for a convention and no one showed up (?). . .if the hall was not paid for, the owner would sue the corporation and not the IJA member who signed for the hall as a representative. However, even if we were incorporated and at a convention someone was hurt (member or non-member) there is no protection against a legal suit for the individual{s) involved.

There is a check list of questions that lawyers ask prospective clients who want to incorporate. The reason is that there are many pros and cons and each situation is very individual. After speaking to representatives for the Small Business Counsel and two corporate lawyers, they all advised against the IJA incorporating.