Do you guys find that being an LLC helps with all of the B>S> these folks put you through? Seems like a lot of you in Ohio have an LLC..I'm in PA (4 miles from Shell cracker) leased to Range Resources and am wondering if I should do the LLC..any thoughts?
I'm in Ohio and I set up an LLC for my property. I did this when everything around us was exploding but since then it became quiet and I like others in the North part of Ohio will have to wait.
I did some research on this and figured it was the safest way to go. It adds a little layer of protection plus things are spelled out. My suggestion is read, ask, read and ask. I got a good O&G attorney once I got going.Liability was the biggest issue plus having control of any leases, royalties, signing bonuses etc.
I set up the LLC myself thru the state of Ohio. One simple form for the name you want to use on the LLC and who are the members. I listed myself and my wife (50/50). Sent the check and the form and in a week or so I received the diploma copy. The attorney set up the articles about who is in charge, how many shares are assigned and typical lawyer phrases to protect our assets.
After this was done the Attorney placed all the property/house etc into the LLC. The thought process is/was that when we signed the lease it would be under the LLC. Once signed the "above ground" would be placed back into me and my wifes name and the O&G lease would stay in the LLC. There is more protection having your assets separated. Everyone will offer their thoughts but I feel the LLC was the best way to go.
Read, ask and then read some more. Pull up LLC info, pros and cons. More good than bad.
If I had a current lease I could sell my property as it would be in my wife and my name. Anything under the house/property would stay in the LLC.
I would do this on my own and strongly suggest you contact an O&G attorney on this. Do not use a Divorce, DUI, dog bite attorney. Most of them do not cover all the bases and could leave you with a few issues later on down the road.
Just saw a lawyer yesterday to discuss options for the management of and transfer of assets. We first contacted our "tax man" He gave us names of lawyers who could do a good job. He said to tell the lawyer what we wanted to do with our gas land. For us, it appears that a "Limited Partnership" will work. The LP is less formal [ less BS] then a LLC and we will be able to transfer surface and subsurface rights to our sons in a reasonable, legal, and minimal tax way.
Each group will be a little different so a LLC, LP, or a Family Trust, or nothing at all might be best for you.