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Is a "mutual benefit corporation" a suitable vehicle for an unmarried couple to use for holding joint assets?
Anonymous1 views3 answers
We would like to hold our joint assets in a separate entity such as corporation, and based on my reading it seems that a mutual benefit corporation would be an ideal entity because the entity would not be generating any profit (beyond capital contributions) and would not be subject to California's $800.00 minimum franchise tax. Is there anything that I am missing here? Is this indeed the correct entity to use?
A mutual benefit corporation would be a disaster. All assets you put in would no longer be yours. There are limits to any salaries or benefits you can pay yourselves, and at the "end" of the corporation all the assets would have to be contributed to another not for profit, not to you since there are no shareholders of a not for profit. You are actually missing everything.
