Legal Question in Business Law in New Jersey

Re: is llc the way to go?

Yes, if your hunting club is for profit, the LLC is the best way to go. It allows great flexibility in the design of the operating agreement and classes of membership. It also allows tax pass through treatment of a partnership.

The clubs I have represented are usually NOT-FOR-PROFIT. This typically has local real estate tax advantages and may provide charitable deductions. It is certainly a route to consider.

You can check out my Choice of Entity assistance on the web at www.taxesq.com/choice.html.

I hope this helps!

Re: is llc the way to go?

Short question. Long answer. May want to form several companies. Need an attorney. Need to answer numerous questions.

Good luck,

Kevin J. Begley

Re: is llc the way to go?

Not necessarily. Each of the four original members probably has a different financial and family situation to consider. It may be worth considering the original four form a Sub S corp or an LLC solely for the purpose of owning and leasing the land to a "Hunting Club". The growth of the membership of the hunting club and future rental revenues would therefore only benefit the original four who took the initial business risk. The club itself may be for profit or not-for-profit depending on your stated purposes.

You really must consult a knowledgeable attorney before you proceed. Your potential liabilities are great.