How to Start a Time Share Exit Business

Start a time share exit business by following these 10 steps:

1. Plan your Time Share Exit Business
2. Form your Time Share Exit Business into a Legal Entity
3. Register your Time Share Exit Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Time Share Exit Business
6. Get the Necessary Permits & Licenses for your Time Share Exit Business
7. Get Time Share Exit Business Insurance
8. Define your Time Share Exit Business Brand
9. Create your Time Share Exit Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your time share exit business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Time Share Exit Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a time share exit business?

Aside from the legal training required, the costs associated with owning a timeshare exit business are minimal. Business owners need a printer, copier, computer, website, phone, and fax machine. Any legal fees can be paid using funds that are collected up front, and there’s no need for an office since most work is done remotely.

What are the ongoing expenses for a time share exit business?

The ongoing expenses for a timeshare exit business are manageable. A business must pay for an office if it has one. Otherwise, the main expenses are the cost of a phone line and internet access, and employees’ salaries.

Who is the target market?

The target market for a timeshare exit business is timeshare owners. Timeshare owners tend to have at least some discretionary income, but that’s not always the case. They are usually people who like to go on vacations.

How does a time share exit business make money?

A timeshare exit business makes money by charging customers to help them get out of timeshares. Because the process can take months or years, many companies charge their fee up front.

How much can you charge customers?

The costs to get out of a timeshare vary depending on the complexities of the agreement and applicable laws, and a lack of transparency in the industry makes it difficult to know exactly what competitors are charging customers.

 

Nonetheless, there are some reports that claim Timeshare Exit Team charges an average fee of $4,000. Others place the cost of getting out of a timeshare at $5,000 and up.

How much profit can a time share exit business make?

A timeshare exit business can bring in a substantial revenue. At the time of writing, the Finn Law Group has 16 pending cases. From those cases alone, the group likely saw $80,000 or more in payments (based on the $5,000-plus price noted above).

How can you make your business more profitable?

Most timeshare exit businesses don’t branch out beyond timeshare law. Instead, they may expand their geographic reach when they want to grow.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your time share exit business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Anyone who is detail oriented and not afraid of conflict may enjoy running a timeshare exit business. In many cases, helping customers get out of timeshares involves heady legal battles that call for attention to detail and confrontation.

What happens during a typical day at a time share exit business?

Running a timeshare exit business is a legal proposition that has three primary aspects:

• Explaining the process to customers, who may be upset, confused, and frustrated
• Researching applicable laws and preparing legal paperwork
• Communicating with resorts, which may involve phone calls, letters, and court appearances

What are some skills and experiences that will help you build a successful time share exit business?

In order to help people get out of legally binding timeshare agreements, business owners must be qualified to practice law. In most states, this means completing law school, passing the bar examination, and becoming a lawyer.

 

Business owners can theoretically start a timeshare exit business and hire attorneys for the legal work, but at this point the business owners add little value to the business. There’s a risk that the attorneys would start their own, competing company.

After passing the bar exam, business owners may need to study laws specific to timeshares in different states and countries. There are some books on these subjects, such as The Condominium Concept and How to Cancel a Mexico Timeshare. Business owners will gain more knowledge, however, by spending a short time working for a timeshare exit business before striking out on their own.

What is the growth potential for a time share exit business?

Most of a timeshare exit business’ work is done remotely, so it’s easy to grow. Some businesses may remain smaller law firms, but many expand quickly once they specialize in timeshares. Primo Management Group is a one-attorney practice specializing in this work. Finn Law Group and Timeshare Exit Team are examples of larger companies handling timeshare exits.