campgroundentity structurerv parks

Using Multiple Entities for to Manage Risk and Save Taxes

 

Are you using the optimal entity selection for your campground?  In many cases, we utilize two separate entities in the campground structure: one for the ownership of the park’s assets, like the land, the buildings, the equipment, and another for the operations of the park.

Why do we do this? There are two reasons. First, taxes could be an issue. Secondly, we want to protect you from legal liability. The legal issue is the bigger of the two items and the reasons we separate them. Whenever someone sues about whatever it may be, the outcome is that you either pay out money, you have the insurance company pay out money, or you could be looking at a judgment in those cases. The judgment allows that person to attach any assets that the entity owns. So if we’re talking about something that happens based on operations, they can only take what the operations entity owns.

If it’s a bigger issue that extends into the property and they can prove that basis, they may be able to dive a little deeper and get into the assets of the asset holding entity of the company, but that takes work and what we want to do to protect you in a legal situation. And I’ll always put roadblocks in the way of somebody who could be suing you make it harder for them. So it’s not an easy deal where they see a lot of money sitting out there on the table waiting for them.

The other reason that we look at separating the two entities could be for tax purposes. Now, this is completely dependent on each person’s individual situation, but we can structure some creative tax moves by using two different entities. We can also set up some protection of when you sell or transfer assets nearing the end of your ownership of the park. So those are really important things that you ought to have good, solid advice on.  If you would like to assess your entity structure and making sure that it’s the best structure for you, I’d be happy to help.

Donna Bordeaux, CPA with Calculated Moves

Creativity and CPAs don’t generally go together.  Most people think of CPAs as nerdy accountants who can’t talk with people.  Well, it’s time to break that stereotype.  Lively, friendly and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux.  They have over 50 years of combined experience as entrepreneurial CPAs.  They’ve owned businesses and helped business owners exceed their wildest dreams.   They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.