We have the LLC carry commercial insurance. It is about $700 per year for vacant land. I discussed in depth with our agent who knows there is a lake used for skiing/recreation on the land, and he assures me that if someone drowns, invited as a guest or not, we will be covered. If we run someone over with the boat, we have personal umbrellas to cover individual acts of negligence.  My biggest concern is someone going out there without an owner, trespassing, fishing, or whatever, and getting hurt or drowning. The LLC can get sued, but in theory, the partners are isolated, per Ohio law.  I file a 1065 and issue K1's to the owners, as we do rent some of the ground to a farmer, and have various expenses, like dye, insurance, etc. The taxes can get passed directly to te shareholders, and the entity is a passive real estate investment, so no real benefit to the expenses, other than deduct from sale price if and when we sell. Just one way to look at it.