Our Offroad Paradise, how to limit my liability on a shared property?

[Deckin Around]

Solved- by the RDP Braintrust, you haven't failed me yet thank you peeps.

the answer was
B. Form LLC with all names

Thanks people

 

[Meaney77]

Sounds like you have the ideal set up out there. Would be cool to see your pix!!

Do you guys ever have any issues with theft and vandalism out there from all of the high desert crack heads?

 

[SBMech]

Seems like to me you would want to just add the other friends on the title, and then at least TRY to get some sort of waiver signed for friends/family not directly in familys on the title.

 

[gqchris]

im not sure about legalities, but that is my dream someday to do. Like above, Im worried about theft. But sure would be awesome and I would just eventually retire there part time once older.

 

[DC-88]

3rd guy this week that needs a Backhoe

 

[pronstar]

Have an LLC own the property, as the sole asset within the LLC.

The idea isn’t to share personal liability, it’s to limit your exposure to liability. And that’s what an LLC does.

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[Deckin Around]

 

[Deckin Around]

Have an LLC own the property, as the sole asset within the LLC.

The idea isn’t to share personal liability, it’s to limit your exposure to liability. And that’s what an LLC does.

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Understood.
It's the "limited" part that bothers me vs. none. For my wife and I, a few years ago we were told to setup our corp and pay the $800/yr CA corp fee vs. an LLC so that our personal assets were more protected if something happens in a corp vs LLC? That's what I am trying to figure out. An LLC would put everyone's name on it, but are our personal assets protected by that?

 

[sirbob]

Great pics - that looks like great place to hang out and have fun!


I did an S Corp because I was told it gave me more protection???? IDK if it does or not.

An umbrella policy is not that much money, id consider one even if I did the lllp or s corp

 

[pronstar]

Understood.
It's the "limited" part that bothers me vs. none. For my wife and I, a few years ago we were told to setup our corp and pay the $800/yr CA corp fee vs. an LLC so that our personal assets were more protected if something happens in a corp vs LLC? That's what I am trying to figure out. An LLC would put everyone's name on it, but are our personal assets protected by that?

Think of it this way:
Your liability is limited to the assets held.

A shareholder in the LLC, their liability is limited to the amount they’ve invested in the LLC.

You cant avoid all liability.
There’s no legal entity that can do this.

From a personal-asset protection POV, an LLC is the same as corporation.



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[JDKRXW]

Sorry to be a negative Nancy but.....
I would start trying to buy my friends out as quickly as possible or sell your share to the group.

It may take years, but this situation is why the saying 'the worst ship I was ever on was a partneship' was invented.

 

[Mandelon]

That's rad!...

Safe Fences, No Trespassing signs, and consult a real attorney regarding using an LLC or an S or C corp.

Umbrella Policy is not that much, only a few hundred a year. Make the other folks in your group help pay it as part of the common area maintenance fees.

Eliminate attractive nuisances, put up some cameras and solar spot lights.

Criminals and thieves suck.

 

[Deckin Around]

Sorry to be a negative Nancy but.....
I would start trying to buy my friends out as quickly as possible or sell your share to the group.

It may take years, but this situation is why the saying 'the worst ship I was ever on was a partneship' was invented.

I get what you are saying 100%%% but I look at this one differently.
It is agreed that this property is not an asset to anyone, not an investment and will never be sold. All sunk costs. Almost like a pre-paid timeshare for life
Property taxes are $250/yr, I'll cover that.

 

[Deckin Around]

Think of it this way:


From a personal-asset protection POV, an LLC is the same as corporation.



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that's it. thank you sir.

 

[yz450mm]

Are you near Hammertown? I came across a property that looks just like that when I was at KOH last year, looked pretty cool.

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[Classic Daycruiser]

Insurance is your best friend. You want to be sure you have enough of it, to protect yourself.

I would start with a sit down with your insurance agent. Figure out what your lacking. Then take his suggestions to your lawyer, and come up with a plan. Then back to agent.

 

[Deckin Around]

Sounds like you have the ideal set up out there. Would be cool to see your pix!!

Do you guys ever have any issues with theft and vandalism out there from all of the high desert crack heads?

My family (M&D) have owned a "homestead cabin" on 5 acres a little bit farther from the lakebed (King of the hammers) for 40+ years that I grew up going to all the time. It has been broken into twice, 1980's and 2010
Rules:
Don't leave anything there you can't afford to loose.

A Geico policy on a whole family of UTV's & dirtbikes is under $500/yr. with collison and comprehensive even!
In 2010, we had a bunch of shit stolen out of a garage. I found my Jeep for sale 2 years later on Race-dezert.com- I got it back after Farmer's insurance had paid me. Long story. My cousin's dirtbike was found underwater in the CA aquaduct in Hesparia.

With this new property, If you are on our street, (a 1.5 mile private road with 1 way in&out) 2 of my full-time neighbors within 1/2 mile will greet you with a shotgun day or night. No Joke. If someone is inside our fence-line, bad news for them

 

[Classic Daycruiser]

My family (M&D) have owned a "homestead cabin" on 5 acres a little bit farther from the lakebed (King of the hammers) for 40+ years that I grew up going to all the time. It has been broken into twice, 1980's and 2010
Rules:
Don't leave anything there you can't afford to loose.

A Geico policy on a whole family of UTV's & dirtbikes is under $500/yr. with collison and comprehensive even!
In 2010, we had a bunch of shit stolen out of a garage. I found my Jeep for sale 2 years later on Race-dezert.com- I got it back after Farmer's insurance had paid me. Long story. My cousin's dirtbike was found underwater in the CA aquaduct in Hesparia.

With this new property, If you are on our street, (a 1.5 mile private road with 1 way in&out) 2 of my full-time neighbors within 1/2 mile will greet you with a shotgun day or night. No Joke. If someone is inside our fence-line, bad news for them

If it's not thief's, stealing your shit, it's Vandals tearing it up. Hope you got a hidden game camera. You'd be surprised what is sneaking around at night.

 

[Deckin Around]

Are you near Hammertown? I came across a property that looks just like that when I was at KOH last year, looked pretty cool.

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Yes but you might be talking about one of our neighbors "Lasertown" which is more in the middle of the lakebed, they are finishing up a 4000sq ft container home We are just outside of the KOH dustbowl.

 

[Deckin Around]

If it's not thief's, stealing your shit, it's Vandals tearing it up. Hope you got a hidden game camera. You'd be surprised what is sneaking around at night.

The cameras have been there and I haven't seen any game to hunt yet.
Just trying to keep the honest people honest, if someone wants something enough they are going to get it. I won't spend the time or money to add bars to windows or security doors to the containers. I might not even lock the doors. If someone wants bed sheets, a BB gun, camping chairs, a water pump and kitchen/bath stuff, I just would rather they not break-in to get it.

 

[HB2Havasu]

Those container homes are badass!

 

[Classic Daycruiser]

The cameras have been there and I haven't seen any game to hunt yet.
Just trying to keep the honest people honest, if someone wants something enough they are going to get it. I won't spend the time or money to add bars to windows or security doors to the containers. I might not even lock the doors. If someone wants bed sheets, a BB gun, camping chairs, a water pump and kitchen/bath stuff, I just would rather they not break-in to get it.

It's been said you leave it unlocked with the radio on.

 

[Tooms22]

Ok, so obviously I wouldn't be giving any legal advice.

But if the entity is just going to own property, most people choose an LLC. Less formalities to deal with on monthly or annual basis. Will the other three parties agree to be members of the LLC? LLCs limit liability to the LLC assets in most situations.

Now, as for option #1. Again, I'm not giving advice. If your corp doesn't deal in "property owning," why would you want to open those streams of income up to creditors (potential injured parties in this case)?

I assume you have some type of property insurance. It might be in your best interest to up those policy limits given that you have a bunch of individuals out there involved in desert activities (guns, dirt bikes, quads, UTVs, you get the idea). Injuries will be more severe than your basic residential home.

I'm not sure how secure the property is but you might want to assess the possibility of uninvited guests entering the property and getting injured or killed (Yes, it still might be on you).

So to conclude... there is no legal advice here

 

[Singleton]

Looks so much better then the prints out left in the trailer
One of these days I need to visit during Hammers.

 

[Tooms22]

The cameras have been there and I haven't seen any game to hunt yet.
Just trying to keep the honest people honest, if someone wants something enough they are going to get it. I won't spend the time or money to add bars to windows or security doors to the containers. I might not even lock the doors. If someone wants bed sheets, a BB gun, camping chairs, a water pump and kitchen/bath stuff, I just would rather they not break-in to get it.

Get yourself an electronic game call and I bet you'll have plenty of coyotes coming in! I don't think you can shoot rifles in that area but it doesn't seem like there are many people around to call it in.