Setting up a hunting LLC

[trophychaser]

Just wondering if anybody has set up a hunting group and has some ideas. I'm trying to talk my 3 brothers, dad, and uncle into this. It's nearly imposible for the average hunter to be able to have a place of their own. That's the main reason I'm looking into setting something like this up. Any advice would be great.

[Tom7227]

There was a thread a while back about hunting camp rules. It had some ideas on what works for some. It may help get you started.

http://www.fishingminnesota.com/forum/ubbthreads.php/topics/1491990/1

[DonBo]

In my personal experience, getting friends/family together on a piece of property jointly owned is a great way to break up a family/friendship. Tread lightly.

Eventually you are going to have major differences on how things should be done, how the money will be spent, etc. Soon after that someone will want out, or someone will pass on. That is when the real hard feeling show.

My suggestion? Buy a piece yourself and rent to them.

[tedl]

In my personal experience, getting friends/family together on a piece of property jointly owned is a great way to break up a family/friendship. Tread lightly.

Eventually you are going to have major differences on how things should be done, how the money will be spent, etc. Soon after that someone will want out, or someone will pass on. That is when the real hard feeling show.

My suggestion? Buy a piece yourself and rent to them.

Good points!! Used to hunt with my brother on his land just didn't work. So I bought some land down the road from his and now we enjoy being around each other during the hunting season.

[HARDTIMES]

I know there can be problem going in as a group,but what about LLC is there a lawyer out there that can explain the plus and minus with setting up a LLC on hunting property?Exp 1 I own 180 acres 40 swamp 40 woods and 100 crp.Exp 2 I own 180 timber?

[DonBo]

From what little I know, an LLC just gives you a liability break in case someone gets hurt on your property. Our "group" is an LLC. Everyone is joint owner. If you wish to have certain laws or rules of how the place is run you can put that into the contract.

Just make sure you spell out exactly how it will be handled if like I said, someone wants out, or dies. THIS WILL HAPPEN EVENTUALLY and should not be a time for hard feelings.

[bigbluepirahna]

We had concerns about our hunting party when we bought land a year ago as well. Mostly about what happens if someone wants out since we'll be taking out loans for the property.

How do you accomplish getting a group of guys that hunt together into an LLC? To form an LLC, don't you have to have a business purpose, make a profit in the first few years to be a legit business, file a tax return, etc?

[HARDTIMES]

I think you need to set it up as a business and your group would be invester in the LLC?That would protect everones personal assets like our home,business and if someone was injured on the property they cannot go after your personal assets.Let say someone in the group gets divorced,our dies?

What happens,I think you need to talk to a lawyer and your accountent.Donbo is right THIS WILL HAPPEN EVENTUALLY.

[lawdog]

Against my better judgment, I'll give you a couple general thoughts.

First, as for liability, I think most people don't understand the liability you have as a property owner in regards to allowing people to hunt on it. Basically if you aren't charging them, there is a statute that protects you and essentially they are treated like trespassers as far as if they are hurt there. The bigger concern you should have would be liability for debts incurred in the group that you are part of.

As to an LLC, in general an LLC was created to provide a business entity that has corporate liability shield with partnership tax status (the best of both worlds). You can (and should) provide for buy out provisions and that type of stuff in your organizational papers and that can address some of the stuff discussed herein. I would STRONGLY encourage you to also develop written guidelines for use of the property now while you are all in agreement on things and getting along well, rather than having a problem down the road without having considered it. There are some requirements as to annual filings, meetings, etc. you have to follow to be an LLC, and you'll have to provide the members with K-1's at the end of the year and do some tax papers and filing there too.

BEST ADVICE, talk to your CPA and your attorney for specific advice.

[DonBo]

Definately talk to an attorney. You don't have to show a profit. You can set it up as a not for profit business. I believe ours says we use the land for recreational purposes. The tax filling at years end for this type of LLC is very simple.

I still recommend you bite the bullet and buy your own property.

[tedl]

Small things such as cutting a tree down for a shooting lane can become big issues.