Purchasing DVC with LLC ?

[jjanne]

Hello All - for folks who may know about or have experience with purchasing DVC with an LLC , what are the advantages (and disadvantages) of this setup and does anyone know if it would avoid resale restrictions when you sell (LLC still keeps ownership of DVC but in this case the managing members of the LLC changes)? (Just to note, this will still be purely for personal use)

 

[Chili327]

Hello All - for folks who may know about or have experience with purchasing DVC with an LLC , what are the advantages (and disadvantages) of this setup and does anyone know if it would avoid resale restrictions when you sell (LLC still keeps ownership of DVC but in this case the managing members of the LLC changes)? (Just to note, this will still be purely for personal use)

Interesting thought!
I'm thinking the signatures have to match, but i could be wrong.

 

[juliebee]

I read some info recently in the DVC FAQs. Let me see if I can link to those. If not, go to DVC website FAQs and then help with contracts and deeds. I'd recommend talking to a tax advisor and attorney.
https://disneyvacationclub.disney.go.com/faq/contracts-deeds/corporation-llc/
https://disneyvacationclub.disney.go.com/faq/contracts-deeds/officer-corporation/

 

[jjanne]

Thanks @Chili327 and @juliebee . Yeah, the first step, setting up the purchase so the DVC is owned by LLC seems plausible. Also curious on the pros and cons, esp. how the resale restrictions may get impacted... If anyone has thoughts / knowledge / experience on this, we're all ears!

 

[sethschroeder]

Do you have an LLC already? If not when I looked I didnt find it really of benefit to start one just for DVC.

A benefit of LLC though is the ability for people to more easily get access to Member benefits seemingly as they dont have to be named on the contract. I suspect though it might be harder to "prove" you have rights.

I know some people have though purchased it as part of things like an LLC or a trust I believe as well.

Personally we just went rights of survivorship when I added my parents who I know are financially stable and I don't have to worry about stealing my points.

 

[Chili327]

Personally we just went rights of survivorship when I added my parents who I know are financially stable and I don't have to worry about stealing my points.

Are they on the contract then, and they could be taken off too?

 

[jjanne]

Thanks @sethschroeder . I have looked into getting one setup , and getting the LLC seems doable and not cost prohibitive... Was hoping to hear more about advantages before we go down the path of setting up one... but it's been quiet here, so not really much to add on the advantages column yet, and still at square one for now....

 

[Sandisw]

Are they on the contract then, and they could be taken off too?

Once you add someone to the deed, they are an owner and can not be removed unless they want to be removed.

They have the same rights as any other owners.

 

[emchen]

Bump to hear about advantages.

@sethschroeder says more people may be able to get access to member benefits.

Theoretically there are tax savings for initial purchase (corporate tax vs upper personal tax bracket). Another theoretical is that member dues may be paid with pre-tax dollars as an expense of the LLC.

Less likely is that use of points by the manager could be considered an Employee Business Expense. This is a guess and would need your tax lawyer's input on it.

 

[FlyingDonut]

Just as a data point: when we bought our resale contract, it turned out it had been owned by an LLC. It didn't impact the sale at all.