Corporations

A municipality or regional district can incorporate or invest shares in an economic development corporation to do the work in a community or region.

A corporation is a legal entity separate and apart from its owners, the shareholders. Legally, it has all the rights and obligations of an individual.

A corporation can:

• Enter into contracts
• Own real property
• Sue and be sued

Opportunities 

Establishing a corporation limits legal liability, protecting the local government from financial risk. A corporation:

• Engages external expertise, freeing up council and board time
• Can develop and adjust programming quickly based on community need
• Operates separate from local government

Limitations

Limitations include:

• Liability and financial risk rest solely on the corporation
• Potential income source goes to the corporation instead of back into the local government
• Challenges around communication and relationship building
• Performance metrics can be difficult to establish

How to Proceed

Learn more about establishing an economic development corporation.