I'm a newbie to this board (a lurker up until now) and really a newbie to off-roading, but I like the idea of being an owner in some land to ride on--so I love the idea.
However, I'm also an attorney (specializing in tax/business). I can tell you this is going to be very difficult. If for no other reason, how you are going about this you will likely have to have an attorney who does securities work make sure you are in compliance with the SEC rules and Alabama Blue Sky rules.
You get past that, and then you have to look at the tax consequences to everyone. It probably won't be much income to every member on a yearly basis, but someone is going to have to pay to have K-1s prepared each year for every member (that racks up accounting fees). You are also going to have to have a strong buy sell agreement, so that if someone goes into bankruptcy or takes a loan out and tries to secure the loan with the LLC interest a bankruptcy trustee/creditor doesn't become an owner of the land and sue to have the LLC dissolved and property sold to collect on their debt.
You also are going to have to maintain some form of insurance on the property itself. I do wonder what that will cost. You simply can't have land used like this and not have insurance---if for no other reason someone who is now an owner gets on the land and gets hurt.
The original idea that equal owners can't sue each other--while logical makes me a bit scared. If someone dies out there, there spouse/family members may be able to bring suit againt the other property owners---even if it is dismissed---you are going to spend a lot of money fighting it. Lawyers are expensive--even when you are right.
I like the idea, and really like the idea of owning something like this---but the actual set up would mean everything. I would recommend everyone who does buy in to buy their own general liablity policy--just in case.
Great Idea!
yes im IN!!!!!!!!!!!!!
