Registering your tour company and getting the right licenses and permits to legitimately operate is actually a really big pain. Justin Wingerter of The Denver Post wrote an article in 2021 detailing just how messy the permitting process is.
Wingerter said, “Due to understaffing at the U.S. Forest Service and a cumbersome process, it can take several years and hundreds of work hours before Colorado guides receive a permit to take small groups fishing, hiking or do other recreational activities on federal lands.”
We all know how dangerous it can be climbing up a mountain. And it’s especially dangerous when an amateur risks their life on a mountain by themselves when they should really hire an expert. But, when agencies flat out ignore permit applications, you get beginners with very little experience climbing up dangerous 14ers like Blanca Peak and Little Bear Peak.
Earlier this year, we wrote about the SOAR Act, which is supposed to help streamline the guide permitting process and eliminate unnecessary headaches the current process causes.
Until it’s passed in Congress, we’ve outlined the typical steps hopeful tour operators can take to legitimize their outdoor guiding Business, which includes: naming your business, registering your business, decide where you’re going to operate, and then get the permit for whatever area of land you’ll operate on (e.g. U.S. Forest Service, Bureau of Land Management, National Park Service, or U.S. Fish and Wildlife Service).
Step 1: Choose Your Business Structure And Location
Registering your tour guiding business may be the easiest part in all of this. The U.S. Small Business Administration (SBA) says to choose your location and business structure first so you know how to register your business.
1A. Different Business Structures
There are (more or less) five business structures you can choose from: limited liability company (LLC), corporation, sole proprietorship, partnership, or nonprofit corporation. Here’s an outline of what some of those business structures mean, according to SBA:
Sole Proprietorship (Individual)
- A Sole Proprietorship is a business owned and operated by a single individual.
- There are few legal requirements to meet to establish a sole proprietorship.
- If you’re operating your business under a name other than your own legal name, you must register a trade name.
- Sole Proprietor is the most common form of legal structure for new small businesses.
Corporation
- A corporation is a legal entity that exists separately from the people who create it.
- A corporation is owned by its shareholders and run by a board of directors elected by the shareholders.
- In a large corporation, the directors hire corporate officers to manage the day-to-day operations of the business. In a small corporation, the directors and the corporate officers are usually the same individual(s).
- Corporations are created by filing “Articles of Incorporation” with the Secretary of State and by adopting bylaws.
- There are certain formalities a corporation must adhere to, including:
- Procedures for annual shareholder meetings
- The election of the board of directors
- Maintenance of corporate records
- Adoption of bylaws
- Complete separation of personal and business finances
- Proper filings with the Secretary of State
- Although many of the requirements may seem unnecessary for a small corporation, they are important to preserve the corporate form.
Limited Liability Company
- An LLC combines the concepts of partnerships for tax purposes and corporations for liability purposes.
- LLCs are created by filing “Articles of Organization” with the Secretary of State.
- While similar, LLCs are NOT corporations. In an LLC, the owners are called members. The members may elect or hire a manager(s) to run the business. As in a corporation, the owner(s)/member(s) may elect themselves to be the manager(s).
General Partnership
- A General Partnership is a business owned by two or more individuals or other business entities.
- Although it is not required, it is strongly recommended that a general partnership prepare a written partnership agreement that outlines the business’ structure and each partner’s responsibilities.
- If the partnership owns real property, the partnership agreement should be filed in the county where the property is located. The agreement should be filed with the county office that keeps real estate records. Otherwise, there is no requirement to file the agreement with any state or federal agency.
- If the partners are operating the business under a name other than their own legal names, the business name must be registered as a trade name with the Colorado Secretary of State.
We checked out some tour companies in a few states to give you an idea of how other guiding companies structure themselves:
Colorado Examples:
Colorado Adventure Guides – LLC
Denver Mountain Guiding – LLC
Colorado Mountain School – LLC
Golden Mountain Guides – LLC
Montana Examples:
Montana Alpine Guides – Domestic Profit Corporation
Swan Mountain Outfitters – LLC
S&W Outfitters – Domestic Profit Corporation
Rock Climb Montana – Assumed Business Name, Individual
Utah Examples:
Southern Utah Guiding – LLC
Inspired Summit Adventures – LLC
Utah Mountain Adventures – Corporation – Domestic – Profit
Roam Industry – LLC
It’s clear that in our guiding company sample, most choose to become a Limited Liability Company (LLC). To be safe, make sure you talk to a professional lawyer to figure out what legal structure is best for you.
1B. Choose Your Tour Guiding Location(s)
Once you know what legal business structure you’re going to form, you need to decide what state you’ll operate in. If you’re going to operate in multiple states, you’ll need to register with every state’s Secretary of State’s office, a Business Bureau, or a Business Agency.
How do you know if you’re officially operating in a state? The SBA lists what to take into account when deciding whether you’re doing business in a state:
- Your business has a physical presence in the state
- You often have in-person meetings with clients in the state
- A significant portion of your company’s revenue comes from the state
- Any of your employees work in the state
- Some states allow you to register online, and some states make you file paper documents in person or through the mail.
If you have a physical presence in a state, your revenue’s coming from guiding in that state, and your employees work there, you have to register your business in that state.
Step 2: Register With State, Federal, and Local Agencies
2A. Get A Registered Agent
Before you register your guiding business with the state departments you’ll be operating in, you’ll need a registered agent. It’s a fancy way to say it’s someone who receives all your legal documents and official paperwork on behalf of your company who lives in the state where you register.
You can take on this role yourself, but you can also use a registered agent service to do this job. If you want to hire a registered agent, go to Google and type in “Registered agent service in YOUR STATE.” Research the different companies, interview them, and verify they’re legit.
2B. File For Foreign Qualification
Some guiding businesses operate in several states, and if that’s the case, you might need to file for foreign qualification in the other states you operate.
Essentially, the state where you form your business is considered “domestic.” The other states you guide in will be considered as “foreign.” This qualification tells the state that a “foreign” business is active there.
For example, you form your business in Colorado, but you also take clients to Utah, Arizona, and New Mexico. Colorado is the domestic qualification, while Utah, Arizona, and New Mexico are all foreign qualifications.
The SBA says you need to file a Certificate of Authority with the state. Using our same example, you’d have to file a Certificate of Authority in Utah, Arizona, and New Mexico. Each state may also require a Certificate of Good Standing from your domestic state (Colorado, for example).
When you’ve decided on your name, business structure, location, registered agent, and any foreign qualifications you’ll need to apply for, you’re ready to file with the state(s).
Information you’ll need to file according to SBA:
- Business name
- Business location
- Ownership, management structure, or directors
- Registered agent information
- Number and value of shares (if you’re a corporation)
- The documents you need — and what goes in them — will vary based on your state and business structure.
2C. State Departments To Register Your Guiding Business:
States charge different fees, but usually it’ll cost less than $300 to register your business. Use the links below to register your tour company with the appropriate state.
List of State Departments
Alabama Secretary of State
Alaska Department of Commerce, Community, and Economic Development
Arizona Secretary of State
Arkansas Secretary of State
California Secretary of State
Colorado Secretary of State
Connecticut Secretary of State
Delaware Department of State
Florida Department of State
Georgia Secretary of State
Hawai‘i Business Express
Idaho Secretary of State
State of Illinois
State of Indiana
Iowa Secretary of State
Kansas Business Center
Kentucky One Stop Business Portal
Louisiana Secretary of State
Maine Secretary of State
Maryland Department of Commerce
Massachusetts Housing and Economic Development
Michigan Business One Stop
Minnesota Secretary of State
Mississippi BOSS (Business One Stop Shop)
Missouri Secretary of State
Montana Secretary of State
Nebraska Secretary of State
Nevada Secretary of State
New Hampshire Quick Start
State of New Jersey Business Portal
New Mexico Secretary of State
New York Department of State
State of North Carolina
State of North Dakota
Ohio Secretary of State
Oklahoma Secretary of State
Oregon Secretary of State
Pennsylvania Department of State
Rhode Island Secretary of State
South Carolina Business One Stop (SCBOS)
South Dakota Secretary of State
Tennessee Secretary of State
Texas Secretary of State
Utah Department of Commerce
Vermont Secretary of State
Virginia State Corporation Commission
Washington Secretary of State
West Virginia One Stop Business Portal
Wisconsin One Stop Business Portal
Wyoming Secretary of State
2D. Registering With the Federal Government
It’s unlikely you’ll need to register your business with the federal government other than to get a federal tax ID. According to SBA, small businesses, like guiding companies, may register with the federal government for trademark protection or to get a tax-exempt status.
For trademark protection: You’ll need to file with the U.S. Patent and Trademark office once you’ve formed your business.
To create an S corp: File form 2553 with the IRS.
2E. Register With Local Agencies
According to SBA, you typically don’t have to register with a county or city government to form your business, but if your guiding business is an LLC, corporation, partnership, or nonprofit corporation, it’s possible.
Find out what cities and counties you’ll operate in, and visit the local government websites to determine if you’ll need to register with them or not. It’s important to verify if you need to register with local agencies since they determine registration, licensing, and permitting requirements.
2F. Stay Up To Date With Registration Requirements
If registering your tour guiding business wasn’t enough, you also have to keep up with your registration requirements, especially if you want to, you know, stay in business.
The SBA says that some states will make you provide reports soon after you register your business. And some require you to file Initial Reports or Tax Board registration within 30-90 days after your register with the state.
If this applies to you, reach out to your local tax office or franchise tax board.
Step 3. Get Your Federal Lands Permit(s)
The permitting process for federal lands comes down to four different agencies: The Forest Service (FS), The Bureau of Land Management (BLM), The National Park Service (NPS), and The Fish and Wildlife Service (FWS).
Note that even though you’ll probably have to get your permitting through one of these federal land management agencies (FLMA), “states have their own set of authorities that govern how outfitters conduct their businesses, regardless of whether or not their operations primarily take place on federal lands. Compliance with state authorities is typically considered a prerequisite for any applicants applying for FLMA-issued commercial recreation permits,” says the Congressional Research Service (CRS).
Forest Service
Forest Service (FS) manages 193-million-acres of the National Forest System (NFS) and authorizes outdoor recreation as a use of NFS lands, among other uses and services.
Bureau of Land Management
Bureau of Land Management (BLM) manages public lands for varied purposes relating to the preservation, use, and development of the lands and natural resources (including recreation).
National Park Service
National Park Service (NPS) administers the National Park System for both recreational use and preservation of park resources.
Fish and Wildlife Service
Fish and Wildlife Service (FWS) manages lands within the National Wildlife Refuge System (NWRS), and authorizes and regulates recreation.
Special Cases:
For hunting and fishing, and possibly off-highway vehicles (OHV) trips “can be specific to a particular FLMA (i.e., agency-specific authorizing statutes listed above), to a particular species (e.g., the Migratory Bird Treaty Act), to a particular region (e.g., the Alaska National Interest Lands Conservation Act), or a combination of t
