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I'm a board president of small condo unit in Queens. We recently got rid of developer who was managing building for last 4 years and pocketing maintenance fees.
When we tried to hire new accountant for the building, he suggested that company that developer registered is "For Profit Company" and that we need to setup new "Not for Profit" homeowners association.
I'm wondering whats the connection between building and homeowners association. Buildings in general are registered at attorney generals office, is homeowners association registered same time , can it be changed later?
I feel your first order of business should be to have an attorney look into the actual form of your condo's association (for profit vs not for profit) and advise you what is best and what you need to do. The two types of corporations are very different, and I believe (I am not a lawyer) being not for profit is much more beneficial for your unit owners and for tax purposes.
This being said, there may be extenuating circumstances which make being for profit better in your particular situation. This is why I suggested working with an attorney. The attorney can also help you get your building into the best legal form allowable, and answer your other questions.
Good luck!
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You can name your co op and register for profit, you can decide to manage your small co op without a managing agent or you can be your own agent. But I would suggest you look into a managing agent in good standing. I would interview a few before you choose one some charge a lot for doing very little. I'd look into Cooper Square they turned so many co op's around and well known, I would not interview EBMG Excel they are very high price and do very little. Even though your a small co op you need to have a board or look to see who can be a treasurer who will look and pay bills and over see your debits/credits. Also look around your neighborhood and see who they use all, buildings have a plate with the agents name and #. Word of mouth is also good. If your lawyer knows of an accountant with co op experience you can also check the Habitat they are great for information. At 1st it's a lot of work to set up an honest managing agent. But with the right agent they will guide you through this process. Good Luck
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