Are You Incorporated?

[hunterridgefarm]

Having several large tracts of land I have had to increase my liability policy since if people get hurt on your property, posted or not, they could sue. /forums/images/graemlins/mad.gif

I talked with several people I know who are in the same situation. They are looking into incorporating as a Limited Liability Company (LLC) and having the company lease the land from them.

I know how this works from a business standpoint. Say you have a machine shop " Bud's Machine Shop" that you run. You own the buildings and machines and "Bud's Machine Shop" leases the building and machinery from you the owner. The companies assets are very low, material, tooling, etc., if the company is sued.

So I could incorporate the farm as a LLC company but it seems that if someone was hurt the could still sue the owner of the company...?

Has anyone incorporated there land, business, or farm as a Limited Liability Company (LLC)?

 

[KentT]

I started an LLC for my home hobby/business (a website) for just the same reasons -- it was cheaper to do so than to buy liability insurance.

I did so, in Delaware using this company:

http://www.smallbiz.com/

It cost about $500 initially. Annual taxes/fees for Delaware run about $300, plus an additional $100 for the "recording agent" services. Still cheaper than liability insurance.

 

[SnowRidge]

More than $400 a year for liability insurance for a web site??? /forums/images/graemlins/shocked.gif

What in the world is the site's content?

 

[EddieWalker]

I used a local attorney to create my LLC. The company owns the land, buildings and equipment. Cost of the LLC was $1,300.

Liability was only a marginal consideration for me. If they sue, your in trouble either way and how much protection you really have is dependent on what happened and how aggresive they go after you.

My reason for forming the company was for financial reasons on starting my buisiness.

Eddie

 

[KentT]

</font><font color="blue" class="small">( More than $400 a year for liability insurance for a web site??? /forums/images/graemlins/shocked.gif

What in the world is the site's content? )</font>

Something similar to this one, except it has far more background info on the tractors. It's dedicated to old Simplicity and Allis-Chalmers garden tractors, from the days before OSHA, ROPS, and such...

http://www.simpletractors.com

Go get a price quote on a million dollars worth of liability insurance -- and a million dollar lawsuit is a small one, these days....

 

[tawilson]

New York has what they call a Fair Access Law, which protects you from lawsuits by people using your property, with certain exceptions(business's). Could see if your state has something similar.

 

[SnowRidge]

<font color="blue"> http://www.simpletractors.com </font>

Hey, I've been there before, just looking around. Nice site. I didn't realize it was yours. /forums/images/graemlins/cool.gif

 

[deerefan]

My wife and I did this w/ our horse ranch b/c as we all know horses can be a big liability. The horses are registered separately so they would have a tougher battle to actually sue us for the horse or horses. We also have a firm standing rule...no one, family or otherwise, are allowed on the property unless my wife and I are home. There are several posted signs surrounding the property also. I'm sure they will still sue regardless but I try to protect myself and my family as much as possible. I work too hard as does my wife to surrender our place to some dimwitted idiot and his lawyer.

 

[MessickFarmEqu]

isn't it sad that this conversation is even nessesary.

 

[hunterridgefarm]

It is sad that this is what we have come to since people don't understand what "KEEP OFF" means.

People now look for any reason they can to sue you.

One reason I am concerned is I am trying to restore my wife's old family home place built in the late 1800's-early 1900's. It has all the original out-buildings; barn, smokehouse, corn crib, tool shed, etc. Everything is in good condition except for the porch and lean-to on the barn, everything was built out of heart-pine. This was recently inherited and we would like to keep it for future generations.

I have boarded up all windows and doors and in the next few weeks should have a fence around the homeplace and buildings. But all this does not matter if someone should get hurt on the property, posted or not.

It is sad that you could be forced to pay for someone's stupidty.