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Non Profit Joint Ownership

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OHenry

Member
Oregon
We own 4/6 shares of a beach house, with 2/6 owned by 2 different unrelated families.
It is currently have it set up as a non-profit, but we want to make it a vacation rental. Can we do this as a non-profit or do we need to change entities?
 


LdiJ

Senior Member
Oregon
We own 4/6 shares of a beach house, with 2/6 owned by 2 different unrelated families.
It is currently have it set up as a non-profit, but we want to make it a vacation rental. Can we do this as a non-profit or do we need to change entities?
A vacation rental is going to be a for profit scenario. Therefore why would you attempt to do it as a non-profit organization?
 

OHenry

Member
It was already a non-profit entity when we purchased shares. We would be changing it, but what entity would be the best fit (sorry if this was unclear)
 

LdiJ

Senior Member
It was already a non-profit entity when we purchased shares. We would be changing it, but what entity would be the best fit (sorry if this was unclear)
A Beach house being a non-profit just does not make sense. You could do an LLC. That is an appropriate entity for rental property.
 

OHenry

Member
We have considered an LLC. The issue being it has been difficult finding an insurance company to insure this property because the owners are 5 individuals who are non-related. Any help is appreciated.
 

PayrollHRGuy

Senior Member
We have considered an LLC. The issue being it has been difficult finding an insurance company to insure this property because the owners are 5 individuals who are non-related. Any help is appreciated.
That's why you create an LLC.
 

OHenry

Member
How much more cost does a commercial insurance package cost (on average) . I know this will vary depending on specifics, but ballpark %?
 

PayrollHRGuy

Senior Member
A call to a local independent agent will give you a quote that actually means something. We don't know ANYTHING about the property.
 

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