Renting out space on personal property to a sports team

[quincy]

... and waivers of liability (to the extent such waivers would be enforceable in your state when it comes to kids engaging in sports activities). ..

Waivers of liability are standard practice and enforceable in the state of Michigan for sports engaged in by both juveniles and adults. The release of liability forms should be drafted carefully by a legal professional to meet specific needs.

Softballmom, please add any additional questions you have about your barn use to this thread. Thanks.

 

[quincy]

Softballmom, you can add all questions about renting out your barn to this thread.

You can consult with a business law attorney to discuss the wisdom of setting up a LImited Liability Company (LLC).

Good luck.

 

[FlyingRon]

Even with an LLC you could be sued as the owner of the property.
Even with an LLC you can be sued over your personal acts of negligence.
Waivers won't protect you against gross negligence.
Proper legal advice and insurance are what you need.

 

[quincy]

Even with an LLC you could be sued as the owner of the property.
Even with an LLC you can be sued over your personal acts of negligence.
Waivers won't protect you against gross negligence.
Proper legal advice and insurance are what you need.

Agreed on all points.

The legal risks involved in a venture such as the one being considered can be high and such a venture should not considered without an attorney's personal review and advice.

 

[Softballmom2018]

What type of business should we form for this and since we own the building do we need to lease the building to the business? Let me clarify, my husband and I own the property and the barn. A youth sports organization wants to rent the barn from us for indoor practice during the winter and pay us for the use. We understand that starting a business is the best way to handle but we aren't sure which type of business to start (LLC, sole proprietorship, etc.). We were just going to put the business in my name, not both (I'm not sure that matters but wanted to mention it). Is it necessary for my husband and I to lease the barn to the business?

 

[FlyingRon]

You don't need to form "any sort of business." Your wife can lease the property to the sports team. It's unclear that an LLC or Corporation will help you at all. First, the property would have to be owned by the LLC/Corp and even then, you'd likely still be held liable for your own acts.

 

[quincy]

What type of business should we form for this and since we own the building do we need to lease the building to the business? Let me clarify, my husband and I own the property and the barn. A youth sports organization wants to rent the barn from us for indoor practice during the winter and pay us for the use. We understand that starting a business is the best way to handle but we aren't sure which type of business to start (LLC, sole proprietorship, etc.). We were just going to put the business in my name, not both (I'm not sure that matters but wanted to mention it). Is it necessary for my husband and I to lease the barn to the business?

Once again I agree with FlyingRon.

You can discuss the renting out of your barn with a business law attorney who can advise you on whether, after a review of all facts (including financial ones), you should consider forming a business and, if so, how it should be structured (from a tax and liability perspective).

Insurance and waivers probably would be the major concerns for you. The attorney and your insurance agent can advise you on these.

Good luck.