Lawyer advice,protection against liability.

I own 60 acres with a friend,our names are on the deed jointly,there is nothing set up besides that.We are going to move forward with an offer to install a solar panel farm on the property.My question is,since this is going to be a huge multi million dollar project,what would be the best way to protect myself liability wise?

We will only be acting as landlords,contract is in the hands of an attorney that specializes in renewable energy contracts.

The initial contract called for the tenant to provide a 3mil insurance policy,and us to provide 2 mil,I rejected that,so now they will do 5 mil at their cost.

My partner is balking at forming an llc,I feel the need for that or something else that would shield my personal assets.Any advice appreciated,and no I'm not going to buy a legal form packet,I'll take the advice here from those in the know and set something up with the contract lawyer and or accountant.

 

Will you be earning ANY form of income from the property? Credits, deductions, etc..

 

He wouldn't do it if not for the income.

 

Put the land into an LLC, jointly owned by you and your friend.

This would limit your liability to the value of the asset (land) only, instead of both land and personal assets.

Multiple friends have this setup for their rentals. Each rental is its own LLC.

 

i don't know much about this stuff, but do know that is the start of a good idea. Get stuff in a corp. or llc to help avoid any personal liability. Get a real attorney involved.

 

You would want a legal entity of sorts. Don't just set one up based on asset protection. I suspect you are getting income from this and will want to think about tax implications as well.

 

Straight rental per acre.Tenant will get the energy credits etc.Utility scale,not for producing power for our use.

 

Make sure on the tenents Certificate of Liability that you or your entity are named as additional insured.

 

Thanks BC.

 

No problem. Get a copy of the CERT and policy and get someone (lawyer) to review it. Might cost a couple hundred bucks, but will be well worth it should something bad happen.

 

Also, remember to have an exit strategy if things go south. LLC will not protect you from Federal Tax issues.

 

Build a treehouse out there. Dits will eventually show up.

-jim

 

Build a treehouse out there. Dits will eventually show up.

-jim

 

Just from personal experience, an Scorp offers the same or betterasset protection and better tax protection

 

Make sure you are named as additional insured on their policy.

 

Key man insurance...an estate battle can wreck a company or other business venture.

 

yes, but do not accept the accord certificate of insurance as the final proof of your AI status. A Cert. is nice to prove that they have the coverage they are supposed to, and, if the cert says that you are an AI, it may be a basis for an argument that you are entitled to coverage.

What you need is an Additional Insured ENDORSEMENT. Certificates are evidence of an insurance policy. An endorsement actually changes the policy.

 

I really appreciate the advice guys.

 

Just curious if their is some kind of bond or insurance to return the land to its former state if the whole thing goes bust. Who knows what will happen with solar and power grids in the coming years.