A commitment to treating people and property well should help club directors and officers avoid increased liability from their positions. That insurance is inexpensive and useful to clubs.ĭirectors and officers of an incorporated club do bear some responsibility in helping ensure the club doesn’t commit unethical, illegal, or injurious activities or behavior. To help protect clubs and their members, the American Homebrewers Association (AHA) has developed a general liability insurance program that clubs can purchase to protect members and other entities from damages. Of course, if a member or associate commits a crime or injury, then those individuals can still be personally held responsible under civil or criminal law. Your club members’ personal assets are not at risk, and club members are not held responsible for the incorporated club’s debts or taxes. Incorporation restricts the exposure of a club to just the club’s corporate assets, thereby protecting the personal assets of individual members. Incorporation shields individual members and associates of the club from personal liability associated with the club’s business or activities. Incorporating a club makes it an entity unto itself. That means members with the deepest pockets could end up bearing most of the debt. Without incorporation, every member or associate of a club could be jointly and individually liable for any club debts or obligations, including lawsuit judgments. It’s when something goes wrong that the club needs incorporation. That easygoing mantra is fine when everything is going well. Why do we need to be incorporated? We’re just friends getting together over a beer. Learn how club incorporation protects members and how nonprofit tax status reduces taxes. Administrative tasks such as incorporating your club or changing its tax status may not be high on your list of club priorities, but these subjects can be important to all clubs. Homebrew clubs are often easygoing and free-spirited organizations.
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