Updated almost 7 years ago on . Most recent reply
Business entity for buying and selling raw land
I am planning to start a business to buy and sell raw/vacant land. I would like the freedom to purchase properties in any state, but I am beginning to think that will be complicated by the rules of most business entities. Also, as a California resident, I am going to be subject to very high annual fees if I form an LLC, even if the LLC is formed in another state. So I am trying to figure out what the best entity and liability protection option is for my situation.
My questions for you folks:
- Do I need to worry much about liability with a raw land business? I won't have tenants or construction workers on the land, only an occasional surveyor or inspector. Planning to hold the land for as little time possible (from a few weeks to a few months). If there is little liability risk, it seems like an insurance policy might be safe enough.
- Am I liable for tresspassers on vacant land that I own?
- As a sole proprietorship, would I be free to operate in all states? Or do I still have to register in each state that I do business?
I am willing to jump through the LLC hoops and pay the fees if necessary, but if I can operate safely and legally without all that trouble, that would be nice.