Advantages of Incorporation

The following material is excerpted from the booklet "Landowner's Guide to Incorporating Irrigation Ditches and Laterals."

By forming a corporation, you gain these benefits:

Your lateral becomes a legal entity with a clearly stated purpose and rules governing what members can and cannot do.
You have a businesslike process for making group decisions about the lateral.
The corporation has contracting ability, and individuals may no longer be personally liable on such contracts.
You have an established process for collecting fees (assessments) from water users and enforcing compliance with the lateral's rules.
Water deliveries can be regulated, scheduled, and enforced by the lateral corporation. This will help eliminate disputes among the water users.]
Government agencies and private companies can work with one organized and managed legal entity regarding improvements on the lateral.
All landowners on the lateral can equitably share the responsibilities and costs for maintenance and administration.
You have a clearly defined process for adding new landowners to the lateral.
Property owners have an additional selling point when potential buyers know that the lateral is organized and works efficiently.