sh$t is a good word for the foregoing 8 or is it 9 pages of poorly written fiction.
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Wouldn't it be nice if we could have an organization that has the advantages of limited liability of a corporation, without the regulation, without the multiplicity of offices of a corporation, for an organization that the government does not create (therefore the organization does not owe its allegiance to the state), and also allow the organization to function as a perpetual trust in order to protect and convey assets for many generations?
If any of this were true it would be nice, but most of it isn’t. First and foremost, a Corporation sole is a legal and juristic creature under state law, and therefore is subject to ALL of the state reporting and other laws. It does not exist except under state statute. Also since it is supposed to be used for a specific purpose, failure to abide by the state laws can result in its dissolution. Also they neglect to tell you about the number of people who attempted using them to avoid taxes, and who not only had to pay the taxes, but the fines, and in some cases got to go to jail for the added experience of having thrown their money out the window.
Carefully reading and comparing the Nevada Corporation Sole statutes* and a well-written corporation sole instrument, we learn that the Corporation Sole can be everything that is listed above. And can make some promoter a lot of money before things blow up.
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The Corporation Sole, despite the hyperbole of the previous document, is largely a 19th Century American invention to deal with non-enfranchised religious organizations, and is nothing more than a special type of non-profit corporation intended to fill the void for religious organizations in the US where they were not a part of the governmental structure. The intent was to allow the Bishops, or religious leader of an organization to hold property for the group without actually holding it individually.
Modernly, many states have discontinued the organization altogether, and some never recognized it to begin with. It is, however, where it exists, a creature of state statute, subject to all state registration, licensing, and regulation that any other corporation is subject to. Plus they have to be registered with both the IRS and the local state Revenue agencies. The only difference is that their internal governance rules are less restrictive than in a regular corporation.
They have been a popular item to sell to people looking to avoid taxes and the like, and they will usually charge anywhere from a few hundred to several thousand dollars, for something that can be done in ten minutes and usually for only a small amount if done through your local Sec of State’s office. A little hint, Corporation Soles are right at the top of the list of things the IRS looks for when they start looking for people to charge with tax fraud, so by all means get a glow in the dark target that says come get me.
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