Vacation rental business structure?

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  #1  
Old 02-14-14, 07:29 PM
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Vacation rental business structure?

Greetings,

My wife and I own 3 vacation rentals at a local ski area. We have registered our business name with the State (I believe as a sole proprietorship), we pay lodging taxes, and have an umbrella policy on top of the usual insurance requirements. We have been trying to do everything right for the past 17 years.

To protect our personal belongings in case we get sued by someone falling on our property etc. should we register the company as an LLC?

TIA,
BWSwede
 
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Old 02-15-14, 04:56 AM
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LLC's do give a higher level of protection to the owner(s). Of course it can vary from state to state, so check with your Secretary of State's office to be sure.
 
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Old 02-15-14, 05:20 AM
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Larry, thanks for the reply.

When I check with the Sec of State's office (probably web site) what am I specifically looking for?

Thanks again,
BWSwede
 
  #4  
Old 02-17-14, 07:38 PM
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I saw your question and did a Google search and luckily found a link to the secretary of states right page here is the link Oregon Limited Liability Company (LLC) - Oregon Licenses, Permits and Registrations . I do agree with Larry however what you cover under your corporation is as important as what you don't. I certainly would cover the property where your tenants are going to be but wouldn't cover your personal vehicles. If you have a car you use only for your business then cover that but not any personal vehicles.

I say that in case you or your wife pass away it is easier to separate your business from yourself and you will not have to pay corporate taxes for anything you might want to keep if you dissolve your corporation. Our neighbor had the same problem when her husband died and she no longer wanted to run his business. She had to pay corporate taxes on their personal car when she dissolved the LLC. So there are good and bad points and I think you should at least consult a lawyer so you can better weigh the pros and cons.
 
  #5  
Old 02-19-14, 07:03 PM
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I was hoping to be able to figure this out on my own, but it sounds like I should get legal advice from a professional.

Thanks for the replies and suggestions.

Best,
BWSwede
 
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