Forming a, Trust or a Society, or a Sec 8 Company
Updated: Mar 18, 2022
However, each form has its own advantages and handicaps. Which form should you choose?
• Trusts are easy to form and run - but unwieldy when it comes to changing objects or settling disputes. You can choose a trust if you are dedicating your own property to public good. A trust is designed to protect the settler’s wishes - this helps prevent unintended changes when you are no longer involved. They are subject to extreme scrutiny and interference of the Charity Commissioner which makes its daily functioning a never-ending hassle.
• Societies are designed as democratic structures, and tend to suit collaborative activities. This form is ideal if your work calls for consultation and equal participation of large number of people. However, societies can also be difficult to govern unless you pack the membership with trusted people.
• A non-profit company is the most reasonable to form. However, once formed, it is also the easiest to control. Firstly, you can form a company with just two persons. Secondly, if you choose a share-capital based company, you can exercise control by keeping a majority of shares with you. Management and control can be separated, as the directors need not be shareholders.