Set up LLC for duck club or is gp fine?

[wrdabney]

About 8 of us are buying a small house this year where we duck hunt to stay in some during the year. We have about 20 guys total who hunt a few different blinds and will be staying in the house. We currently have a general partnership set up to buy the house but I'm concerned that won't provide us with enough protection from liability. Should be set up an LLC to put the house and the blind leases under or is a general partnership sufficient? Also, do you guys who have dealt with this recommend anyone in particular for hunt club insurance? We have a long term lease on the blinds if you're wondering why we would buy a house. Thanks.

[Greenhead22]

I would put the house ownership under the LLC with the prospective members paying their equal %.

[Odis]

Also, have an exit strategy that's fair to everyone that owns the house just in case things don't workout in the future

[wrdabney]

So is it unwise to just have a general partnership set up and not an LLC?

[gps4]

Yes, unless you want to be personally liable for the debts of the partnership. LLC limits a member's liability for debts created/caused/incurred by the other members. The limit is the amount of contribution/owner's equity the member has in the llc. This means your personal assets can't be subject to attachment/execution if the partnerships assets can't satisfy a judgement.

[ScottyLee]

LLC, equal ownership with a buyout clause set up. as far as the insurance goes, insurance would then be in the LLC and you can add each member as an additional insured, in case they were to be sued separately in a case involving the LLC. then the liability insurance would also cover that individual.

[TK]

Definitely do the LLC. I am in my 13th year of an LLC with what started as 10 members. We are down to 9 now and I am 1 of only 4 original members left from when we started the LLC. That is why everyone is telling you to have an exit strategy in place. It doesn't matter how close of friends you are with everyone involved life happens and someone will want out for some reason or another.

If someone wants out of our club the member selling must get the potential buyer 100% approved by the remaining LLC members. I am not sure what would happen if that member couldn't find someone that is 100% approved. We did have one potential member that was not allowed to buy in because 1 member voted no and refused to change his mind.