Legal Question in Business Law in California

Re: Association

Well, actually, in the purest sense it is not necessary to take any legal steps or fill out any forms to start an association. The participants or members just start associating.

However, the persons who make up the association should consider whether and to what extent they need to formalize their organization. Steps to shape and define an association should be taken before it collects dues (although at this stage, maybe all it needs are a set of bylaws), owns property, or engages in any kind of trade or business.

Associations can be unincorporated, or may choose to incorporate. The size, purposes, amount of money to be handled and the like may dictate the degree of formal structure that is advisable. Try to find an attorney who can advise the organization as soon as it has financial dealings or potential for liability to outsiders, or even to its own members.

The problem with trying to address the steps in forming an association is that the term can encompass so many different types, sizes and purposes. Your association could be anything from a small social club up to something as major as a business partnership, country club, political party, labor union, church or whatever.