Most collectives defer legal and governance decisions until a conflict forces them. This is the single most reliable predictor of early failure. The collective needs a legal entity (LLC, LLP, or land trust are the most common), a written membership agreement, a clear income-sharing formula, and a documented decision-making process — before anyone moves onto the land.
Key questions & considerations
- 1.Legal entity type and land ownership structure
- 2.Income-sharing model: full pool, partial, or expense-only
- 3.Decision-making process: consensus, council vote, rotating planner model
- 4.Membership agreement: rights, obligations, trial periods, exit terms
- 5.Financial transparency: monthly reporting is non-negotiable