Outline for Starting a New Outdoor Recreation Business

Updated June 4, 2020

Not every business will follow this outline; however, it provides some basic ideas on when and why you need legal advice to protect your business.

Check back as this page will be updated with new ideas and articles.

Year 1

1. Create Limited Liability Company for your business: Because the cost of starting an LLC in most states is minimal, start one immediately and start using the name to provide notice that you are doing business as an LLC. See Starting Your Outdoor Recreation Business: Entities and Taxation
   

For more information about entity options see: Starting Your Outdoor Recreation Business: Entities and Taxation

1. Unless you want your business to be a non-profit business, then set up a non-profit corporation.
   
2. Even if you expect to go public at a later time, an LLC provides the most protection immediately.
   
   1. Start the LLC in your own state. If you need to later, you can move the LLC or start another LLC or corporation in a state that might have better laws than your state, such as Delaware.
      
      1. Compare the cost of starting an LLC in your home state $50-$100 to Delaware, $750.00
         

1. Apply for the necessary permits to operate on the land you want to be using.
   
   1. Inquire with the land managers if there are permits available.
      
   2. Find out how to apply for a permit and the requirements
      
   3. Determine if you can get a permit.
      
   4. Make friends with the person in charge of permits.
      
2. Apply for Insurance for your business
   

   I can provide you with a list of insurance carriers who specialize in Outdoor Recreation Insurance. Email me at mailto:jhmoss@gmail.com?subject=I’m interested in your list of insurance brokers Include your name and contact information and a little about your business.
   

   1. Basic business liability policy
      
      1. This provides protections you might need such as someone falling at your office, advertising liability, etc.
         
   2. Specialty risk policy for your outdoor activity
      
      1. This provides the protection for the specific activity you want to do.
         
         1. Make sure it provides coverage for SAR costs.
            
   3. Commercial Automobile policy
      
      1. If you are going to transport people, this policy will probably be your most expensive policy so purchase it only when you need it.
         
3. Write a Risk-Management Plan
   
   1. Probably one page long. Any longer and you are writing a plan for attorneys to sue you.
      
   2. You cannot write a plan that covers every risk you, your employees and your guests are going to encounter. So don’t try.
      
   3. What you can do is take an ICS course, online, and learn how write a plan that deals with what to do, what you have and who to contact rather than trying to decide how to put out a fire.
      

   For more on this subject see: Creating Your Risk-Management Plan
   

4. Identify classes and education needed by you and your employees for the programs you will be running/teaching/instructing. (Certification is not the key; education is. See Basics of the Article are Good – But it confuses certification, accreditation and most importantly standards.)
   
   1. First Aid Classes
      
      1. Dependent upon the distance from Emergency Medical Services
         
      2. Dependent upon the first aid supplies you can carry.
         
      3. Dependent upon the injuries you guests & employees may incur.
         
   2. Leave No Trace
      
      1. This is a critical skill set, knowledge and practice to operate on my lands in the US.
         
   3. Technical Classes (Examples)
      
      1. Swift Water Rescue
         
      2. Top Rope
         
      3. Mountaineering Guide
         
   4. Classes required by a State of Federal Licensing Agency. (Examples)
      
      1. Child Care
         
      2. Health Department Food Preparation
         
   5. Educational classes(Examples)
      
      1. Flora, Fauna & Ecosystem training for the area you will be operating.
         
5. Create your marketing campaign and social media presence
   
6. Contact me to write a release for you.
   

   Send an email to jhmoss@gmail.com and request the form to fill out to complete a release for your business. Please provide contact information and information about your business.
   

   1. The release will be based on:
      
      1. What you intend to do.
         
      2. On whose land you intend to do it.
         
      3. The guests you want work with.
         
      4. The state where you intend to work.
         

   For information on how to use your release see: Releases: Using it Properly
   

7. Apply for any state license you need to operate.
   
   1. Travel Agent License
      
   2. Transportation license
      
   3. Outfitter and/or guides licenses
      
8. Identify Trade Associations & join.
   

For more on this see: Why you should always be a member of the trade association that represents the activity you provide?

1. Hire a CPA
   

Year 2-3

1. Determine if you need additional Limited Liability companies.
   
   1. Separate LLC’s for each state you may be operating in.
      
   2. Separate LLC for the assets you have.
      
      1. Each piece of Real Estate should be located in its own LLC.
         
      2. All vehicles should be in a transportation LLC.
         
   3. Separate LLC’s for each Federal, State or Local Permit
      
      1. Alternatively, you can keep the permits in your name.
         

   For more information on this subject see: Why would you create more than one Limited Liability Company for your business?
   

   Call me to discuss these options and which one is best for you:
   Schedule an Appointment

2. Write the necessary contracts to operate the different LLC’s
   
   1. Owner ship of the LLC’s for the different states you are operating in.
      
   2. Lease Agreements for real estate you are operating on.
      
   3. Contracts for hiring transportation services for your guests and employees
      
3. Review your insurance policies every two years to make sure your coverage is adequate, and you are paying the proper premium.
   
4. Create a risk management training program with local Fire, EMS, Law Enforcement and SAR.
   
5. Start running background checks on new employees
   
   1. Do this every year if you are dealing with minors?
      
6. Identify State and Local marketing associations and determine the value to your business.
   
7. Further Develop Your Marketing Plan
   
   1. Adjust your marketing plan for the customers you are receiving.
      
   2. Develop social media presence
      
   3. Develop a referral program
      
   4. Develop a local community marketing program
      
8. Develop vehicle maintenance programs
   
9. Develop equipment maintenance and replacement programs
   
10. Hire bookkeeper or payroll firm that works with your CPA.
    

Year 3-5

1. Check to see if your release needs updated.
   
2. Run background checks on all employees each year.
   
3. Develop in-house training programs
   
   1. First Aid as needed by:
      
      1. Your Clientele
         
      2. Your area of operations
         
      3. Your permit or licenses
         
4. Develop a managerial training program
   
5. Set up additional LLC’s for holding assets and separating risk
   
   1. Each parcel of land should be set up in a separate LLC.
      
      1. Each parcel of land should have a lease agreement with the entity or business using it.
         
   2. Each high-risk asset should be placed in a separate entity.
      
      1. Transportation
         
         1. Each transportation entity should have its own agreement.
            
   3. Travel Agency
      
      1. If you are booking more than trips, separate this off to a separate LLC and set it up as a separate travel agency.
         
6. Develop equipment and asset replacement plan
   

Years 5-10

1. Look at moving assets into a Limited Liability Limited Partnership for greater protection
   
2. Look at who is going to take over your business.
   
   1. Start to create an exit plan
      
3. Create Insurance deductible account and fund
   
   1. Raise your deductible based on the amount of money you have been able to place in the insurance deductible account.
      
      1. This amount should be a minimum of five times your deductible, possible ten times.