With us, the property (to which mineral rights attach) is owned by an LLC of which we (brothers) are the owners and managers. Checks go to the LLC and money is distributed from there. Actually simple--LLC is not a taxable entity so we file the income individually on our own taxes. LLC also protects joint ownership against lawsuit against a single brother.
A potential solution to discuss is this:
LLC can assign the mineral rights 1/3 each to each of the 3 members. If each member wants its own LLC to hold the 1/3 mineral rights, each member can form his own LLC.
The property can remain in the original LLC.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More