Creative Ownership Structures

[zachatak]

Has anyone here created an LLC to own their DVC points and then subsequently added friends/family/etc as members of that LLC?

I am thinking of doing this and then setting up our bylaws and operating agreement such that my wife and I still maintain control of buying/selling/renting out points (I will be managing member) but that each person/family who also become members and have a certain number of points allocated to use however they wish.

More or less, we would create our own mini-DVC operating company and it would initially be a gratuitous transfer as my wife and I are the current owners of the contracts and we have no immediate plans to have any other members of the LLC in the near future.

Benefits to doing this:
Everyone gets grandfathered perk status (AP discounts - assuming they come back, blue cards, etc etc)
We can bring additional owners in and out as we see fit with minimal paperwork and we can vote to allow new LLC members in and out whenever we have a shareholders meeting.
We specify the buy in price for anyone we allow in vs that family going down the resale path.

Possible pitfalls:
Running afoul of Disney/ROFR
Dealing with family who cant pay dues and causing family drama when they get booted from the LLC

Regarding ROFR - we technically wouldn't be bypassing ROFR every time the LLC ownership changed since the actual owner of of the DVC contracts wouldn't be changing (would always be the LLC, just with different members) at least that is how I currently understand what I've read.

At this point, I'm pondering this because of close friends and family who enjoy going with us on trips but their families are changing and kids being born and others with kids growing up and not caring for Disney. My wife and I are the stable Disney people who will continue to go until we die (period!) so I am trying to devise a way to allow our larger circle to enjoy what we enjoy but without the headaches of the process and to offset some of our personal costs associated with our Disney habits.

I am a business owner and understand corporate structures and all involved. I have not run this by my attys yet but wanted to see if anyone else had done this or something similar before and to let some of our resident attorneys and DVC veterans pick my ideas apart before spending more time on the idea!

Thoughts, comments, improvements, suggestions?

 

[BWV Dreamin]

I think you risk a law suit from Disney. I would seek legal advice before doing so.

 

[RoseGold]

DVC allows corporate ownership, and it is done all the time. I rented points once from a FL LLC that had heaps of contracts. BUT you really need to talk to a lawyer. You are using words you don't understand.

Disney allows you to add both "officers" and board members as blue card, these are NOT the same thing, and neither are members or shareholders. These laws, costs, and organizations vary a lot by state.
https://disneyvacationclub.disney.go.com/faq/contract-deeds/corporation-llc/
If I were buying direct, I would do an LLC in my state (very cheap) and it would have a deep, but not very powerful board. But your state may vary, and my estate is already dealing with a bunch of entities, so what's one more?

The ROFR part is far more complicated. And I have not seen the new RIV contracts. That's a question for your attorney.