Legal Question in Business Law in Texas

Liability of Individual Members of an Unincorporated group

There has been discussion in our Church about the need to Incorporate to protect individual Members from being sued as a result of accident on Church Property or Accident resulting from Negligence on the part of any Member of the Church.

Some Members understand that by Incorporating, the ''general'' membership is protected from being sued.

Other Members believe that Incorporation cannot prevent any individual from being named in a suit brought against the Church.

Can you explain how being Incorporated vs. being Unincorporated affects the liability of individual members of an Organization? Is there greater liability for all individual members by being Incorporated or not?


Asked on 4/03/06, 7:42 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Liability of Individual Members of an Unincorporated group

An incorporated entity is a legal, although fictional, person and is responsible for its failings. The shareholders in that entity are insulated from the failings unless they have personal and directly participated in it.

Without incorporation, all the members of the association may be held jointly and individually liable for the failings of the association.

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Answered on 4/03/06, 9:18 pm


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