Should I Start an LLC for My Glamping Business?

Starting a limited liability company (LLC) for your glamping business 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 glamping business, lawsuits can arise from things like local zoning code violations, as well as guests sustaining injuries as a result of poor construction of your glamping units.

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

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

Do I Need an LLC for a Glamping Business?

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

You should start 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 Glamping Business

By starting an LLC for your glamping business, 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.

Glamping businesses will benefit from liability protection because of the risk of liability for personal injury and other general business liabilities.

Example 1: You advertise images of a comfortable glamping facility on Instagram; a client likes it and makes payment. Upon arrival, you direct him to share the public restroom, and he rejects it, insisting he paid for the comfort as advertised. Only your business assets may be affected if he sues you, but your personal assets will remain safe.

Example 2: A guest patronizes your glamping facility located in a remote area. At night, he gets bitten by an insect, and it causes him severe skin irritation. He complains that the environment was not adequately fumigated and decides to sue. Your LLC will protect your personal assets from the financial fallout of the lawsuit leaving only your business assets liable.

Example 3: A faulty electrical connection in a tent shocks your client, causing her to have a seizure. After she recovers, she is traumatized and unable to complete her tour. She is unhappy and resolves to take legal action. Though your business may be held liable, your personal assets will remain safe from the lawsuit.

Example 4: Your customers are participating in a group activity at your campsite. A customer suffers a serious head injury and decides to sue your business for failure to maintain a safe environment.

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 Glamping Business

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 glamping business 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

Glamping businesses 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 dependable 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?

Yes, all businesses need insurance. While your LLC protects your personal assets as the business owner, you also need insurance to cover the business’s assets from potential risks. Glamping businesses need insurance to protect them from property theft and lawsuits from clients.

Common Situations Business Insurance May Cover for a Glamping Business

Example 1: While walking to your restroom, a customer trips over a box, breaks a wrist, and demands your business pay for her ambulance ride and medical treatment. General liability insurance would cover her medical expenses and any additional damages if she flies a lawsuit.

Example 2: As an employee arranges a new luxury campsite display in your showroom, she accidentally drops a box onto a customer’s head. The customer suffers a serious head injury and decides to sue your business for medical treatment and additional damages. General liability insurance would pay for your legal defense and any required settlement.

Example 3: A local competitor sues your business, claiming you libeled her company in your recent advertising campaign. While you disagree with the claim, you want to hire an attorney immediately. General liability insurance would cover your legal defense and any required settlement.

Other Types of Coverage Glamping Businesses 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 glamping businesses should obtain:

Commercial Property Insurance

You made a major investment in your business real estate, inventory, equipment, and supplies. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials you store there.

Workers’ Compensation Insurance

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 workplace accident.

Data Breach Insurance

Also known as cyberattack insurance, this coverage protects your business from liability if a cybercriminal hacks into your computer system to steal sensitive customer data, and your customers sue you for damages. In the event of such a lawsuit, data breach insurance would cover your legal fees and any settlement payouts.

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 and commercial property insurance.

Read our Glamping Business Insurance article for more info.

The main cost of starting a glamping business is purchasing land and tents. Tents can cost between $9,000 to $48,000, depending on the type and size. You may need to purchase simpler tents with fewer amenities and use your own land in order to minimize startup costs.

Visit our How to Start a Glamping Business guide to learn more about the costs of starting and maintaining this business.

The ongoing expenses of running a glamping business include fees for using land for the campsite, labor, maintenance of tents, utilities, and other consumption costs.

Learn more about running a glamping business.

Glamping businesses make money by charging visitors a daily or weekly rate for the use of their campsites.

Learn more about starting a glamping business.

Glamping businesses provide camping accommodations with hotel-like amenities. “Glamping” is short for “glamorous camping.”

The global glamping market is projected to reach $4.6 billion by 2026. The average profit for a glamping business will depend on how luxurious the camping tents are. Glamping experiences can be as cheap as $50 per night and as expensive as $5,000 per night.

Learn more about starting a glamping business.