How to Start a New RV Park

From the northeast to the beautiful western states, America’s outdoor areas are the ideal place for starting a new RV park.

By Brad Nakase, Attorney

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Table of Contents

1. Introduction

2. 1) Business Plan

3. 2) Business Structure

4. 3) Estimating Costs

5. 4) Naming Your New RV Park

6. 5) Starting a Business Account for an RV Park

7. 6) Additional Equipment

8. 7) Necessary Documents for your RV park

9. 8) Finding an Area to Specialize In

10. Camping Out: A Profitable, Enjoyable Business for the Outdoor Entrepreneur

Introduction

More and more, entrepreneurs have been turning to our forests, parks, and streams for new business opportunities, and many outdoor enthusiasts are starting their own RV parks. Starting a park from the ground up has many benefits, including spending time outside, meeting other fans of the outdoors, and carving out your own profits in what is reportedly a booming industry.

With more Americans camping than ever before, more RVs are filling our roads, and an increasing number of people are checking into RV parks to spend some time relaxing and recreating out in nature. Whether you have been waiting for the right time, or this is a dynamic new entrepreneurial idea for you, the time is right to start your own RV Park. Here, our California business startup lawyer will provide you with all the information you need to hit the ground running.

When you open an RV park, you open up your business to many different types of outdoor enthusiasts. From young adults who are building and traveling far and wide in their custom vans, to families with small children getting out of the house and into America’s gorgeous state parks, to seniors rolling down the road during retirement, your RV park will truly play a large, colorful role in numerous peoples’ lives and memories. Plus, overall interest in the RV lifestyle is undergoing a popularity boom, with more people identifying as RV in 2021 than ever before.

When viewing an RV park as a business opportunity, opportunities are readily available across the country. One of the first things to consider is what type of area aligns with your personal and business interests. An RV park can focus on many different things, from close-by national monuments and parks to public hiking trails, private attractions, state parks, and more. With the demographic of RV owners growing and expanding as the months pass, RV camping’s overall popularity is flourishing. This means it is a great time to start the RV Park you have been dreaming about.

There are many unique factors to consider when starting an RV park, such as nearby attractions, the acreage that you prefer, specific locations you prefer, and amenities. You will also have to effectively deal with zoning and licensing rules, as well as be aware of small business structures and the local, state, and federal requirements to adhere to.

Our checklist for your exciting new project is as follows:

Select Your Business Plan
Choose a Business Structure
Create a Name for the RV Park
Estimate Business Costs—Current and Future
Register the RV Park
Open Business Accounts
Purchase Necessary Equipment
Advertise and Market your New Business

We strongly recommend beginning your RV park venture with a comprehensive business plan. Spending some time outlining your expectations and goals, as well as the challenges you expect to encounter, will help your business focus on the strengths of your idea and also become aware of what you can improve. Let’s go over some of the most important aspects of starting an RV park, so you can get started today.

1) Business Plan

The format of your business plan is up to you, but we recommend covering:

Requirements for Land Use

Parks must be in accordance with federal, state, and local laws, rules and regulations. These involve everything from utilities and setback requirements to fire protection, waste removal and disposal, open spaces, and more.

Location

A very important category, location involves the size of the park and proximity to roads and highways. In this step, also think carefully about accessibility and how terrain, weather, and seasons can impact the public accessibility of your new park.

Independent or Franchise

Do you want to set up—or at least start with—one independent business, or do you already have plans to franchise your RV park? Franchising your park with an association such as Campgrounds of America or other similar groups allows you to take advantage of pre-made plans for your business and customizable advertising. However, if you are thinking about your RV park on a smaller scale to start and want to explore your independence as an entrepreneur and business owner, independent parks let you take 100% of the profits and create your own camping path.

Activities and Attractions:

Would you like your RV park to be an attraction itself, with awesome amenities and on-site activities? Or do you see it more as a comfortable spot to get some peaceful shuteye before heading off to nearby attractions?

Seasonality

Most RV parks have a pricing plan that flexes with the low and high seasons, so they can make the most out of their clientele. If possible, try to anticipate the different pricing plans you might offer. It is also helpful to decide if there are periods of time when it makes sense to shut down for a little while, perhaps due to weather concerns. Shutting down can provide time to perform repairs and can save money in the long run.

Clients and Market

Knowing your customers and understanding their expectations is a key piece of building your own RV park’s reputation. Many campers have become millennials and even Gen-Xers, and as time passes and the generations change, people from all walks of life are jumping on the RV bandwagon for the beauty and simplicity that is inherent in camping. Your clients are the force that drives your popularity, and it is integral to consider your customers in every decision that you make. What are safety issues important to them, for example? Which services do they respond to, and what amenities do you think they wish for? Paying attention to social media posts about your business can provide some insight here as well.

Learn more:

2) Business Structure

Regardless of whether you are looking to franchise your RV park or run one independent campground, you will need to choose an appropriate business structure. Most RV park owners structure their new businesses as limited liability companies, known as LLCs or corporations. You also have the option of creating a general partnership or a sole proprietorship, but your recommendation is you stick with an LLC or a corporation. This is because of the options that these structures present in not only shielding your liabilities but also providing beneficial taxation.

While it involves some initial setup work and payment of fees, creating an LLC is the overall less complicated option. RV park LLCs also provide more flexibility in running and structuring the company. Plus, you will draw up an agreement for your business that concerns operating, and that will become a guide for your managers and partners in terms of daily operations. Also, you do not have to feel stuck within the structure of an LLC. If you run your RV park as an LLC for a few years or seasons and decide that you would like to change things, you can simply change your business to a corporation with relative ease.

Calculating the Costs of Starting an RV Park

There are costs unique to the camping industry that are important to consider as you make your plan. Among the main categories you will need to consider in your business, and financing plans are:

Planning for Inspections
Zoning Requirements
Installation of Utilities
Landscaping
Excavation
Purchasing Real Estate
Construction
And More

Business Models

Taking a look at franchises that already exist, we can see how they outline their franchise-based requirements and use them to model our projections:

10 usable land acres (purchased already), at least
Minimum inventory of 90 rental sites, including 75 sites for RVs
$1,800,000 – $2,250,000 cost on average
Liquid assets of $500,000, minimum

Learn more: Business Structure

3) Estimating Costs

You can also estimate the complete cost of an individual campsite, which is normally $15,000 to $50,000 and includes 10 RV sites per acre.

Costs that do not factor in equipment can include:

Reservation system fees made online
Taxes on payroll
Permits and licenses
Fees based on franchising
Environmental impact studies, land acquisition, and zoning applications and licenses
Surveys of your surrounding area
Blueprints and landscape plans
Inspections and construction fees
Sanitation, electricity, other utility fees, including water
Fees based on establishing your LLC, filing fees, quarterly/annual taxes, and business licenses

Advertising and Marketing

Being aware of your advertising and marketing budgets is also essential to your success as an RV park owner. Partnerships with renowned RV dealers, posting on social media, using paper brochures, and even billboards and online ads can all come into play here. We suggest coming up with a comprehensive plan for both marketing and advertising and always being on the lookout for new ways to promote your business.

Your website is indeed a crucial aspect of advertising these days, and there are a number of services available that can help you design a highly-functional and convenient site that is representative of your business. Preferably, your clients should be able to view your RV park, check out its features, and even book their campsite on your website. If your website is also fun to look at and features great photography and even videos, this can be an added bonus. Make sure to include your prospective website costs in your budget, including content, hosting, development, and overall design.

Startup Costs

As you continue to estimate budgets, plans, and costs, it can all grow a little overwhelming. Figuring out how to manage the costs of any startup can be a challenge, and this is often true for RV parks. First off, assistance from the US government can sometimes prove to be easier to get than a loan from a bank, and this is uniquely true for RV parks. The US Small Business Administration tends to be more experienced with camping businesses and, therefore, more accepting of your proposal. This also holds true with the United States Department of Agriculture as well, so these are good contacts to target for your business.

SBA loans can provide $5 million towards:

Machinery costs
Furniture Needs
Supplies
Purchases of Land
Technical Equipment
Construction that is considered new

Another option is approaching a private investor or commercial lender. Keep an open mind and write strong proposals, and these types of lenders might also be open to helping fund your startup RV park business. Another option is to open a business credit card. Even if you only use a business credit account to fund a portion of your startup costs, you will be spreading out your payments, so they do not prove too taxing, gathering credit card rewards, and most importantly, building up your business’s credit.

Checking on Licenses and Permits and Filing with Your Chosen State

Now that you have decided on the ideal business structure for your business, it is time to file for your new LLC or corporation, along with a DBA, if you’d like one (we will cover that next). The business structure that suits your business should allow it to grow as the years pass, but as we have said, you can change your structure as needed. Next, we recommend checking with your state and local area to find out what additional licenses and permits are required for your area.

Do not forget that all unique business entities need to obtain an EIN, otherwise known as an employer identification number. Simply go to the Internal Revenue Service website and apply online. Or, you can apply by fax or telephone.

Knowledge of your specific geographic area is key here since land-use regulations and rules differ by state, municipality, and county/town. We recommend getting to know the state and town personnel, including the state inspectors, who you will work on licensing and zoning with, as this will help you not only as you get established, but further down the road.

Licenses and permits can be a challenge, but all of these requirements are very important parts of running an efficient, legal business, so we encourage you to take all of these steps seriously. Being diligent and practical now will help your RV park evolve smoothly from the startup and construction startup period into its next stages of success.

4) Naming Your New RV Park

Coming up with a name for your RV park can be a fun and exciting process, but do not overlook its importance. You might choose a simple name that is reflective of your surname, the area, some of the attractions surrounding your park, or something completely different. Whatever you choose, be sure to do a thorough online search to make sure that your business name is unique and not in use, even elsewhere in the country.

Learn more: How to Come Up with a Business Name

Dark Sky RV Campground, Kanab, UT. Yosemite Pines RV Park and Family Lodging, Yosemite, CA. The Shady Dell RV Park, Bisbee, AZ. Paradise Shores Camp, Bridgeport, CA. Horse Thief Campground and RV Resort, Hill City, SD. The name you choose for your RV park can instantly provide your customers with valuable, enticing information about the nature of the camping experience that you have planned. As the owner, you not only are familiar with all of the best aspects of the property and surrounding area, but you want to share this information to interest prospective campers.

Coming up with a versatile, intriguing name may not be as simple of a task as you think it will be, so be sure to set some time aside to brainstorm and talk to your friends, family, and team. As we mentioned, your name cannot be in use by another business or RV park, and it also should be easy to digest and remember. A good place to check on other competing names is the California secretary of state’s website. Go right to the business database. You can also try checking on social networks—many RV parks have organized groups—as well as domain registrars.

Another option is to use a DBA name or “doing business as” when you start your LLC. If you are searching for a way for your park to have a more official name in the books but also be able to use a more marketable name in the public sphere, this is a great option.

Often, your RV park’s business name your clients’ first encounter with your business. The name of your park is what they see advertised in newspapers and magazines, on social media, and even on street signs as the property draws near. Since this is the way that many people will first discover your business, make sure your name is memorable and unique, but do not make it too complex. Naming your business is another step to check off of your list: after choosing your structure and registering your company, you will also register the official name. After that, it is off to the races.

Insurance

Figuring out your insurance setup is another step that should be on your to-do list. Different RV parks have different insurance needs, depending on your payroll situation and number of employees, offered amenities, park size, and the established laws of insurance in the area. A qualified insurance agent can help answer all of your questions and make sure that you are covered in case of an emergency.

Keep in mind that whenever you are conducting business outside, you must contend with the weather. Mother nature can be cruel, so if you are starting an RV park in an area that you are unfamiliar with, do some research and talk to the locals. The key is to identify the seasons that may offer weather challenges ahead of time, so you can be prepared.

5) Starting a Business Account for an RV Park

It is important to choose the business account that is the correct fit for your particular park. Consider the arrangement of the account and whether you want a checking or savings account, or both. We would also recommend a business credit account, and sometimes, these can be a package deal. Again, do not rush this process. Instead, do your research. Different accounts offer different incentives and rewards, so it might make sense to think about what the “ideal” business account would offer your RV park ahead of time.

Another reason we mention this is a simple one: RV parks are not one of those at-home businesses that only necessitate a laptop and an idea. RV parks require a lot of equipment, and you will need to authorize these purchases. Some of the equipment you may need to buy will be:

Signs (for the park and possibly surrounding area/streets)
Internet hardware and equipment, since Wi-Fi is now a must
Fee collection stations
Bathroom supplies
Service vehicles (commonly pickup trucks or golf carts; park size dependent)
Janitorial and sanitation supplies
Utility hardware for water, sewer hookups, electrical and additional plumbing as needed
Waste containers that are wildlife-resistant (bear boxes, for example)

Now, you may need some or all of this, or your needs may be different. This is simply a guide. Your specific RV park will have its own needs, and we suggest doing two things: making a list and touring or contacting parks similar to yours. Find out what they cannot live without and what supplies they go through fast and always have on hand.

6) Additional Equipment

Your employees and on-site personnel are the lifeblood of your business, so make sure they are well-equipped to help make the park as perfect and inviting as it can be. Your employees will need power tools such as drills and also technical equipment such as laptops and payment-processing devices. It is up to you how reservations will be reviewed, and check-ins will be managed, but most of these tasks are done online these days.

Remember, you are not only running a beautiful park but also playing host to guests. It is best to equip your employees and yourself with the supplies and equipment that will make dealing with playing host a breeze.

The Importance of Social Media

It is worth mentioning again that social media has become an invaluable tool. Not only can it do wonders for your business, but it is also a fun, interactive way for your campers to remember their times at your park and spread the word. We recommend having someone on your team—it could be you if you are social media savvy—coordinate all of your social sites and update them with pictures and videos. This, along with established hashtags, will give guests a place to post about their experiences.

Whether you are advertising a “Mother’s Day Deal” on Facebook, providing brief tours on Twitter, posting about the nearby waterfalls on Pinterest, or interacting with satisfied guests on Instagram, social media is an unstoppable force that makes sense to take advantage of. Create a buzz about your new venture, and it cannot hurt!

Online Accessibility

There are a wealth of options out there these days to increase the visibility of your RV park. From Yext to Birdeye to Semrush to the classic Google My Business, you can now claim your business profile. Not only that, but you can optimize its profile so that when customers search for an RV park in, for example, San Diego, California, your park pops up. Pictures, videos, and reviews are all helpful in providing some color and detail to your profile.

When most people go on a trip nowadays, they start by doing their research. If you manage your profile correctly, your RV park will be a high point that stands out within their results.

7) Necessary Documents for your RV park

Yes, much of what we see and do today occurs online, but there is still a lot of power in pictures and paper. An ad in a tourist booklet will still work wonders for the marketability of your business, as will a park brochure ad or being included in a magazine or newspaper that is covering the local area. The key is to get your RV park’s beautiful surroundings and the amenities and features you have worked so hard on in front of people.

If this seems overwhelming, or if you simply need to focus on other aspects of the business, that is not a problem. If it does not make financial sense to hire someone to help with this, there are pre-packaged options such as website formatting tools (Squarespace, for example) and email marketing campaigns that are relatively simple to manage.

8) Finding an Area to Specialize In

According to Campgrounds of America, interest in the RV lifestyle in America is now reaching a new high. More people are interested in buying RVs and heading out camping than ever before. This creates the perfect opportunity to specialize in your business. How can you figure out how to focus your RV park? Think in two ways. One, consider your interests. Two, consider what trends are popular right now. If you can find an intersection between those two lists, all the better. Here are a few examples:

Luxury camping (Glamping)
Camps based on a specific activity: sailing, fishing, boating, ATVs, cooking, swimming, biking, surfing, overall fitness, sailing
Natural attractions such as waterfalls, hikes, canyons, rivers, beaches
Social causes, religion, clubs, and hobbies
Specific demographics such as age (seniors, for example) or families with small children
Excursions
Language and learning about new/native cultures

Camping Out: A Profitable, Enjoyable Business for the Outdoor Entrepreneur

As you probably already know, starting up and running an RV park requires not only land but a financial investment, hard work, and a leap of faith. But as the world has continued to deal with the pandemic and the fallout from it, RV campers have been increasing the number of trips they take each year.

We encourage you to view this exciting process of planning, building, and establishing your RV park as both a serious process and a fun challenge. Spending time outdoors as you work towards your entrepreneurial dream is something that will no doubt pay dividends and that you will remember forever.

Good luck with your new venture, and if you need any legal support, contact Nakase Wade for a free consultation. We have helped many businesses get registered and ready to go, and our business lawyers are here to answer all your questions and help you with all other important startup tasks.

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