LLC for Road Associatoin

DRRAinAP

New Member
Jurisdiction
Colorado
We are a road association. How do we form an LLC that is owned by the landowners adjacent to the roads? Currently it is not titled correctly and the LLC we are using is owned by one of the owners. This does not seem to me to be appropriate. We need to know how to set up an LLC that is actually owned by the Road Association. We have three directors/officers and one new one is elected every year so the board is constantly changing. Thank you for help with this.
 
How do we form an LLC that is owned by the landowners adjacent to the roads?

Are you looking for some sort of step-by-step "how to" instructions?

Also, "roads" (plural)?

urrently it is not titled correctly

To what does "it" refer?

We are a road association. . . . the LLC we are using is owned by one of the owners.

This is very confusing. Obviously, you are not an association. You are a human being, and so too are the other persons who constitute "we." Your statement that "the LLC [you] are using is owned by one of the owners" suggests you're not a member of the association/LLC, so it's completely unclear what your actual connection to this "road association" is. Nor is it particularly clear what the purpose of the "road association" is.

We need to know how to set up an LLC that is actually owned by the Road Association.

In the first sentence I quoted above, you said you want to form an LLC "that is owned by the landowners," but now you say you want the LLC to be "owned by the [r]oad [a]ssociation." Which is it?

Unless you can describe what's happening and what you want to accomplish with much greater clarity, there's nothing anyone here can do for you other than to suggest retaining an attorney.
 
Are you looking for some sort of step-by-step "how to" instructions?

Also, "roads" (plural)?



To what does "it" refer?



This is very confusing. Obviously, you are not an association. You are a human being, and so too are the other persons who constitute "we." Your statement that "the LLC [you] are using is owned by one of the owners" suggests you're not a member of the association/LLC, so it's completely unclear what your actual connection to this "road association" is. Nor is it particularly clear what the purpose of the "road association" is.



In the first sentence I quoted above, you said you want to form an LLC "that is owned by the landowners," but now you say you want the LLC to be "owned by the [r]oad [a]ssociation." Which is it?

Unless you can describe what's happening and what you want to accomplish with much greater clarity, there's nothing anyone here can do for you other than to suggest retaining an attorney.
Thank you for your thoughtful answer. We are a road association and I am one of the officers of that association. However, when the roads were purchased, it was not deeded properly. Before the incorrect deed is changed, we want it to be deeded to the Road Association as an LLC with that LLC owned by the landowners who are adjacent to the roads. Currently the LLC that we have been doing business under is owned only by one land owner--not the association or all the landowners. The purpose of the road association is to keep liability insurance on the roads so that individual owners are not liable. At this time, the association does not maintain the roads. Any expense for maintaining them is the responsibility of the individual owners.


As the chairman of the committee to get it deeded properly, my questions are:
1. Can the LLC be owned by the Road Association and if so, how do we go about forming that LLC.
2. Can the three officers jointly be the administrators/directors of the LLC? If so, is there a way to designate sinply the Board of Directors or would we have to change the names on the paperwork with the state department every time officers changed?
3. If the LLC can't be owned by the road, association, how can it be owned so that it isn't just in one person's name?
4. So I am essentially asking what is the best way for us to own the roads and how to we go about making that legal? I think we do need an attorney, but before asking the owners to allocate the money for that, I need to have a clear idea to present to the as to what we need to do to insure that we owners do actually own the road as an LLC.

Please ask me more questions, but I hope I have made what I need omore clear
 
As the chairman of the committee to get it deeded properly, my questions are:
1. Can the LLC be owned by the Road Association and if so, how do we go about forming that LLC. 2. Can the three officers jointly be the administrators/directors of the LLC? If so, is there a way to designate sinply the Board of Directors or would we have to change the names on the paperwork with the state department every time officers changed?
3. If the LLC can't be owned by the road, association, how can it be owned so that it isn't just in one person's name?
4. So I am essentially asking what is the best way for us to own the roads and how to we go about making that legal? I think we do need an attorney, but before asking the owners to allocate the money for that, I need to have a clear idea to present to the as to what we need to do to insure that we owners do actually own the road as an LLC.

Please ask me more questions, but I hope I have made what I need omore clear

To attempt such a thing without competent legal assistance would be an absolutely foolish endeavor. All of your questions can be answered by the attorney you hire to assist with this matter.

EDIT: In fact, you may be breaching various duties if you don't hire an attorney.
 
As the chairman of the committee to get it deeded properly, my questions are:

First you need to educate yourself as to what an LLC is and then use proper terminology in your presentation. LLCs do not have officers or directors, they have members, some of whom can be designated as managing members.

See:

Limited Liability Company (LLC) Definition (investopedia.com)

On to your questions.

Can the LLC be owned by the Road Association

Not sure "owned" is the appropriate word but, in the abstract, yes, the Road Association can be an LLC.

how do we go about forming that LLC.

You go to your Secretary of State's website and follow the instructions:

Limited Liability Company (LLC) (state.co.us)

Note that there are links to statutes that you need to study.

Can the three officers jointly be the administrators/directors of the LLC?

Yes. They can be "managing members."

If so, is there a way to designate sinply the Board of Directors or would we have to change the names on the paperwork with the state department every time officers changed?

You would have to name the managing members and update the LLC when they change. There are probably amendment forms online at the foregoing website.

If the LLC can't be owned by the road, association, how can it be owned so that it isn't just in one person's name?

How does XYZ Road Association LLC sound?

:D

So I am essentially asking what is the best way for us to own the roads

No that's not what you asked. You asked about an LLC. Whether an LLC or some other type of entity is "best" is beyond my ken.

I think we do need an attorney, but before asking the owners to allocate the money for that, I need to have a clear idea to present to the as to what we need to do to insure that we owners do actually own the road as an LLC.

Back to the SOS website and read all about it.
 
We are a road association and I am one of the officers of that association. However, when the roads were purchased, it was not deeded properly. Before the incorrect deed is changed, we want it to be deeded to the Road Association as an LLC with that LLC owned by the landowners who are adjacent to the roads. Currently the LLC that we have been doing business under is owned only by one land owner--not the association or all the landowners.

Again, you are not an association. It's unclear whether this association is a legal entity or simply a group of people pursuing a common interest. Your statement that you "have been doing business under" an LLC implies that the association either is that LLC or owns the LLC. However, you've been very clear that the LLC is solely owned by only one of the property owners. Your statement also implies that the LLC could own an LLC, but that's only possible if the LLC is already a legal entity. Since your questions relate to the structure and formation of legal entities, these ambiguities make extremely difficult to provide much guidance.

Can the LLC be owned by the Road Association and if so, how do we go about forming that LLC.

If the association is organized as a legal entity (e.g., a corporation or LLC), then yes, it could own an LLC. If the association is not organized as a legal entity, then no, it cannot own an LLC (although the individual members of the association could own an LLC).

Can the three officers jointly be the administrators/directors of the LLC?

Not sure who these "three officers" are, but you've provided nothing that would make anyone think there is any restriction on who may serve in various capacities for the LLC you wish to form (note that "administrator" and "director" are not terms commonly used in the context of an LLC).

If so, is there a way to designate sinply the Board of Directors or would we have to change the names on the paperwork with the state department every time officers changed?

As phrased in the disjunctive, this question doesn't make much sense. Designate the board of directors for what purpose? Again, LLCs don't typically have boards of directors. Not sure what paperwork you're referring to, but Colorado, like every other state, does require regular filings that indicate who the officers/managers of a corporation/LLC are.

If the LLC can't be owned by the road, association, how can it be owned so that it isn't just in one person's name?

An LLC can have any number of members.

what is the best way for us to own the roads and how to we go about making that legal?

Private ownership of public roads is highly unusual. Usually, roads are dedicated to the city or county. In any event, determining what is best for multiple people who are anonymous is an impossible task. I therefore strongly suggest you retain the services of a local attorney.
 
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