What are the costs to start and maintain a corporate retreat center?

Starting a corporate retreat center requires a substantial budget, especially if you are planning to build or design the center from scratch. You will need to acquire a facility that has: Large rooms for your attendees to stay in A commercial kitchen Spaces for presentations, meetings, and training Advanced audio and video equipment Visit our How to Start a Corporate Retreat Center guide to learn more about the costs of starting and maintaining this business.

Do I Need an LLC for My Corporate Retreat Center?

Starting a limited liability company (LLC) for your corporate retreat center can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a corporate retreat center, lawsuits can arise from a variety of different factors. Quite commonly, however, they arise as a result of an employee or a client getting injured within your business’s premises.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your corporate retreat center seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

person sitting in front of an ocean at a corporate retreat center

Should I Start an LLC for a Corporate Retreat Center?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should form an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Corporate Retreat Center

By starting an LLC for your corporate retreat center, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Corporate retreat centers will benefit from liability protection because of the risk of being sued for personal injuries, the libel of other corporate retreat centers, and property damage.

Example 1: While hosting a team of content writers, you notice that two of them are getting into a heated argument over who can write better articles. When the argument eventually gets physical, one of the injured parties sues you for breaching your duty of care, claiming that nothing was done to prevent or de-escalate the situation. Since your business is registered as an LLC, limited liability will protect your personal assets regardless of how the claim escalates in court.

Example 2: You take on a large business loan to build a second corporate retreat center. Since the loan was made between the lending party and the LLC — and you did not personally guarantee the loan — the lender will not be able to sue you in order to recoup their investment if your LLC is unable to pay them back.

Example 3: While preparing a meal for a team of editors you are hosting, your head chef slips on a wet kitchen floor and bangs his head on a nearby sink. If he were to sue your LLC for medical damages and/or loss of income — depending on the extent of his injuries — your personal assets would remain safe regardless of the legitimacy of the claim.

Example 4: A retreat attendee slips a disc during a yoga class and blames your instructor for poor teaching technique. They sue your center for medical damages.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Corporate Retreat Center

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a corporate retreat center owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Corporate retreat centers rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a trusted LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

LLCs need insurance in order to protect their business’s assets (e.g., visual equipment, retreat center, furniture, etc.)

This is because limited liability protects the owners’ personal assets only. It also does not protect owners against torts or negligent acts that they’ve personally committed.

Common Situations Business Insurance May Cover for a Corporate Retreat Center

Example 1: A retreat attendee slips a disc during a yoga class and blames your instructor for poor teaching technique. General liability insurance would cover the attendee’s medical expenses stemming from the injury and your legal fees in the event of a lawsuit.

Example 2: As an employee delivers supplies to your corporate retreat, she accidentally damages an attendee’s car. General liability insurance would pay to repair the customer’s car and replace or repair any damaged supplies.

Example 3: During an interview with a publicist to promote your business, you cite examples of past corporate retreats to illustrate your points. One of your past corporate clients believes you portrayed them in a negative light and sues you for libel. General liability insurance would cover your legal costs.

Other Types of Coverage Corporate Retreat Centers Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all corporate retreat centers should obtain.

Commercial Property Insurance

Commercial property insurance can help protect your retreat’s buildings, grounds, and any business-related materials you store there in the event of a fire, burglary, or natural disaster. if a major storm damages one of your residential cottages, for example, this type of policy would cover the cost of making the necessary repairs.

Workers’ Compensation Insurance

Corporate retreats may require employees to perform strenuous physical labor, which can lead to serious medical conditions. Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.

Commercial Auto Insurance

Any vehicle you or your employees use primarily for business — such as to transport clients — requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business-related equipment or supplies you carry in your vehicles.

Business Interruption Insurance

If your business needs to close for an extended period of time due to weather-related conditions or property damage, business interruption insurance can help cover your lost revenue and ensure you don’t go out of business before you can reopen.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance, workers’ compensation insurance, and commercial property insurance.

Read our Corporate Retreat Center Business Insurance article for more info.

Starting a corporate retreat center requires a substantial budget, especially if you are planning to build or design the center from scratch.

You will need to acquire a facility that has:

Large rooms for your attendees to stay in
A commercial kitchen
Spaces for presentations, meetings, and training
Advanced audio and video equipment

Visit our How to Start a Corporate Retreat Center guide to learn more about the costs of starting and maintaining this business.

Ongoing expenses for corporate retreat centers include maintenance, utilities, insurance, salaries, marketing, food, and activities.

Learn more about running a corporate retreat center.

A corporate retreat center primarily makes money by hosting corporate retreats for businesses of all sizes.

Learn more about starting a corporate retreat center.

A corporate retreat center offers businesses the opportunity to experience corporate retreats, training seminars, and other gatherings such as meetings. In addition, it can also help the business plan them.

A corporate retreat center’s profits depend on how many attendees it has, what it charges per attendee, and the overhead costs.

Learn more about starting a corporate retreat center.