Re: Incorporated vs unincorporated
There was at one time, some disadvantages under the tax laws for businesses owning real property. Don't know if they still exist.
John S is right on the money about liability. A partnership or association can be sued to the extent of each individual members' personal assets. It rarely happens though because most folks protect their holdings by getting insurance. Either outright property liability and/or umbrella policies.
Under an incorporation, only the corporate assets can be attached for liability. If an individual stock holder or member has committed the act leading to such liability, that particular person's assets are still at risk in addition to those of the corporation. In order to keep the corporate protection in force, the corporation must follow all the rules and regulations applicable to corporations. Annual filings, stockholder and director meetings, Many of the vacation community associations are set up like corporations and many are actually incorporated. etc. There's many up around Raystown Lake that are run rather slip shod and could result in all the owners in the community being sued as a group and individually. Homeowners insurance will often step in, but it is a mess if some owners don't have it.
For instance, a truck driver delivering pies for a bakery is individually responsible for an accident he causes, the same as his employer, because he is the agent of the company. Now if a member at a camp performs an act for the camp or group of camps and causes an injury while doing so, both he and the camp corporation are liable. If the camp is not a corporation, he and all the members of the camp are liable. That is why having insurance is so important. If the camp maintains adequate insurance, the liability of the members, whether a corporation or not, becomes less likely a problem.