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Islandbuilder
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Registered: 11-9-2011
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B&B Permits?
Hi,
We're kicking around an idea for slowing down before we retire completeley, and have a question that I think someone here can help answer.
What permits are needed to operate a small B&B in Baja? I assume we need work visas, but what else? Does it vary from area to area depending on
zoning? Or can you pretty much go for it?
Thank you in advance.
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djh
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Location: Earth mostly. Loreto, N. ID, Big Island
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Mood: Mellow fellow, plays a yellow cello...
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Safest Route...
1. Form a Mexican corporation with the help of a good Notario Publico from the area you want do do a BB in. Ensure that you list the appropriate
busines(es) that you wish to be able to conduct in the incorporation paperwork.
2. Have your property TITLED in the corporation's name. Use the same Notario Publico. You own the corp., the corp owns the property = you have the
actual title to your property in your file cabinet...
3. Get your FM3 Lucrativa(s). (Residency with legal permission to work, earn, hire, etc.). You will work for your own corporation.... You have
letters from the corp offerring you employ ent and letters from you accepting the offer of employment (for immigration).
4. Hire an accountant to get you legally registered with Hacienda and SRE. Your accountant will be important, and will help keep you legal with
annual, quarterly filings, your tax obligations, any payroll and social security pmts. for any employees, etc.
Bob and Susan are some of our best advice on these things.... I'm in Hawaii just now and don't have all my files to give all the details, but the
general outline is above....
My advice: Do it correctly and legally from day 1. Any less can (and is quite likely to) result in huge problems for you which could result in loss
of your property, assets, and right to work or even live in Mexico. I know that there are some here who will say... I've done this or that (under
the radar) for years, and bully for them, but I wouldn't do it that way myself in the US OR in Mexico, and so my humble opinion / advice reflects
that.
The red tape can be more confusing in a foreign country / language, but doing it correctly, and developing good relationships with your local
officials will help you stay away from some of the problems that others have had.... there are lots of stories out there...!
BTW: What area are you considering...? Perhaps you'll get some more specific good directions & referrals here if you know or want to tell where
you're considering a B&B.
Good Luck to you.
djh
Its all just stuff and some numbers.
A day spent sailing isn\'t deducted from one\'s life.
Peace, Love, and Music
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captkw
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Island builder
I, 2nd the first response, and can tell you,,careful,a lot of folk's get the baja bug,dream of a little-------- and then spend year's trying to stay
legal,,be avised,, it s a old problem down here and I for one have seen many folk's go thru the nightmare of running any sort of biz here,,go
fishing,enjoy the beach,make friend's,, dont start a bizz,here !! if you can find any gringo's that will say, keeping a ------ biz, in baja, is a
peice of cake,,is drunk or crazy,, and almost all fail,,or quit...seen it time and time and time again.....my two centovos..K&T
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Bob and Susan
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having a business in baja IS a "piece of cake"
but
you WILL NOT make money with a "b&b" take MY word
there are WAY more things to consider than djh listed
my advice...until you know ALL the "rules" just vacation...fish...bike...and have fun
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mcfez
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Just vacation......sounds like solid advice!!!!!!!
Doing a BB at this current state of world financial affairs....I'd take a back seat for a while.
If you must...then buy a house that is large for your plans (good time to by BTW) and sit on the idea of a BB. You could always simply rent out a room
long term.
We were buying in San Felipe for the last 8 years...no more. It's a market that's dead, dead, dead to make a short term buck
Old people are like the old cars, made of some tough stuff. May show a little rust, but good as gold on the inside.
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shari
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Mood: there is no reality except the one contained within us "Herman Hesse"
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I find being in business in Mexico extremely tricky, frustrating and costly making it pretty hard to make a profit on a small operation....but not
impossible and lots of people do it...like mentioned above, ya gotta pay a real good agent to line up all the ducks for you from the get-go.
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Islandbuilder
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Thanks to all of you! I very much appreciate the time you took to offer your considered responces.
At this point, we're just considering options. We have a boat-based adventure tourism business now, operating (with all the permits) in Alaska,
Washington and British Columbia. Our boat is old (1932), and our program is very physical (daily walks and kayaking), and maintaining the boat takes
months of the off-season. Bottom line, is that A; I have some understanding about how the current economy is impacting discretionary (vacation)
spending, and B; the hidden strains of being in the hospitality business.
We are getting old and tired, and the boat business is wearing us down. We can't quit earning an outside income until we are both fully able to
receive our SS benefits (no IRA's or other savings). So I'm looking for a way to connect the dots between now and 2020, when mi esposa reaches the age
of entitlement.
I spent almost 20 years as a custom home builder, and another 25 running boats (commercial fishing, adventure charters, recreational sailing and
cruising). After almost 10 years of running the boat, with up to 12 guests and our 4 crew, for trips up to 14 days duration, where we are responsible
for the guests safety and entertainment 24 hours per day, running a B&B seems like it would be a piece of cake. (And yes, I know that is an absurd
statement)
I asked this question, in large part, because I wanted to hear what I've pretty much heard, and will, I'm sure, hear more of. The pitfalls and perils
of running a small business in Mexico, the legal requirements (along with the local "interpretation" of those requirements, and how others in the
business would respond.
I am in the earliest stages of even thinking about this, but it makes sense to ask these questions before even looking at a real estate website.
In the last few years I have had several people approach me to ask me about how to get into the romantic and easy living business of adventure charter
boat operation. I know how I react to those folks (concern for their mental state mostly) so I know how experienced folks here (like Shari) might
react ( ) to me. I understand, and appreciate your in-put.
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BajaBlanca
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well, we love being in the B & B biz and I would recommend it in a heartbeat !
Once your ducks are in order, it is a piece of cake. Mostly, you have to surround yourself with expert advisors - accountants - attorneys who can help
you jump thru the hoops.
any idea where you would want to relocate to ? I suggest living there for a while first, just to get your feet wet !! Good luck !
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shari
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Posts: 13052
Registered: 3-10-2006
Location: bahia asuncion, baja sur
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Mood: there is no reality except the one contained within us "Herman Hesse"
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You are completely right that, with your experience...particularly in the charter industry...a B&B here would most likely be easy for you.
We were kind of in the same boat when I first settled here...albeit for different reasons. I had a daughter to support and was trying to figure out
what skills I could offer to the town I lived in.
Teaching was wonderful way to support myself and give back something to the locals...this is very possible and could be integrated into your future
business plan. It certainly sounds like you are capable and aware so this is excellent. There are easier ways to do things now and lots more changes
coming that a good agent & accountant will help you understand and choose the best way to start off.
Spanish will be necessary of course and you will enjoy getting to understand the folks who you work with and live around. I'm sure you will find your
niche if it was meant to be and are patient & persistant. My understanding is that working is getting easier to do with new immigration status
changes....wooo hooo....a new life begins for you in baja.
Baja is an amazing place to live and if you can figure out how to feed your family while living your dream...well...great!
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Islandbuilder
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| Quote: | Originally posted by BajaBlanca
well, we love being in the B & B biz and I would recommend it in a heartbeat !
Once your ducks are in order, it is a piece of cake. Mostly, you have to surround yourself with expert advisors - accountants - attorneys who can help
you jump thru the hoops.
any idea where you would want to relocate to ? I suggest living there for a while first, just to get your feet wet !! Good luck !
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I agree about living there first! We would travel to narrow down the choices, then rent in our top 2 or 3 before buying. That's the plan anyway.
As far as general location; that's complicated. Most of the folks we have gotten to know through our charter business are wildlife photographers and
natural history enthusiasts. They love not only seeing whales, but also the smaller, less charismatic stuff, like tube worms and migratory birds.
These people would be our market niche, not sportfishers, or ATV'ers or tear-up the desert folks. People that would appreciate a couple of miles of
empty beach, an estuary, and some tide pools far more than a nearby disco.
Related to that, I would like to build a home/mini-community that is energy independant, utilizes gray water for landscape and garden irrigation, some
kind of passive de-sal, and sustainable building using locally available materials. That sort of systems integration and efficiency would also bring
guests who are curious about how it all works because they want to use a similar approach on building their own remote homes.
I wouldn't mind being 50 miles from anyone else, even though I know that would make it almost impossible to have any drop-ins.
I think that we have to have the option of operating year-round, which I think, given my low-energy consumption goals and therefore not having AC, we
would want to be on the Pacific side. That's about as far as I have gotten.
And, it may be as far as I go!
Thank you all again.
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djh
Senior Nomad
Posts: 936
Registered: 1-2-2005
Location: Earth mostly. Loreto, N. ID, Big Island
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Mood: Mellow fellow, plays a yellow cello...
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Bob's right about the details
Islandbuilder, Check your U2U..
Its all just stuff and some numbers.
A day spent sailing isn\'t deducted from one\'s life.
Peace, Love, and Music
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mtgoat666
Platinum Nomad
Posts: 20374
Registered: 9-16-2006
Location: San Diego
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Mood: Hot n spicy
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| Quote: | Originally posted by Islandbuilder
Thanks to all of you! I very much appreciate the time you took to offer your considered responces.
At this point, we're just considering options. We have a boat-based adventure tourism business now, operating (with all the permits) in Alaska,
Washington and British Columbia. Our boat is old (1932), and our program is very physical (daily walks and kayaking), and maintaining the boat takes
months of the off-season. Bottom line, is that A; I have some understanding about how the current economy is impacting discretionary (vacation)
spending, and B; the hidden strains of being in the hospitality business.
We are getting old and tired, and the boat business is wearing us down. We can't quit earning an outside income until we are both fully able to
receive our SS benefits (no IRA's or other savings). So I'm looking for a way to connect the dots between now and 2020, when mi esposa reaches the age
of entitlement.
I spent almost 20 years as a custom home builder, and another 25 running boats (commercial fishing, adventure charters, recreational sailing and
cruising). After almost 10 years of running the boat, with up to 12 guests and our 4 crew, for trips up to 14 days duration, where we are responsible
for the guests safety and entertainment 24 hours per day, running a B&B seems like it would be a piece of cake. (And yes, I know that is an absurd
statement)
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not sure a B&B is a piece of cake, it's a biz like all other bizs.
instead of a B&B, perhaps buy a small hotel.
or bring your charter biz to mexico and sail the SOC,... a few outfits do boat tours in SOC for kayaking and diving, but they struggle a bit, like all
businesses, i suppose. i think their problem is they hire too many people, or are "coerced" to hire too many people...
you might consider somewhere in OR, CA or WA,... gringos are staying away from mexico due to drug wars and perception of violence, and the USA tourism
market is probably more reliable...
outside of the resort towns, the tourism market in mexico is contracting, not expanding, so if you invest, make sure your biz plan factors in
declining revenue over time
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Bob and Susan
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Posts: 8813
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Location: Mulege BCS on the BAY
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| Quote: | Originally posted by Islandbuilder
.... Most of the folks we have gotten to know through our charter business are wildlife photographers and natural history enthusiasts....
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actually you are targeting the WRONG people for a B&B in baja....
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bajaguy
Elite Nomad
Posts: 9247
Registered: 9-16-2003
Location: Carson City, NV/Ensenada - Baja Country Club
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Mood: must be 5 O'clock somewhere in Baja
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2 cents worth
My advice to anyone who wants to start or own a business is to find a similar one in the states or Baja that you like, then offer to work there for
about 6 months for free, top to bottom.........you might find out some things......
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desertcpl
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Posts: 2406
Registered: 10-26-2008
Location: yuma,az
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| Quote: | Originally posted by Bob and Susan
| Quote: | Originally posted by Islandbuilder
.... Most of the folks we have gotten to know through our charter business are wildlife photographers and natural history enthusiasts....
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actually you are targeting the WRONG people for a B&B in baja....
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just asking, why would he be targeting the wrong people?
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Bob and Susan
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Location: Mulege BCS on the BAY
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because those are not the people that stay at a b&b in baja...
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Islandbuilder
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Thank you all, again, for your advice and for sharing your personal experiences.
One thing I want to clarify. Because of our experience in the remote charter business, and as home builders, I don't think that I know it all, but I
DO have a pretty clear idea of what I DON'T know.
IMHO, Knowing your limitations is of far more value than it is often given credit for.
I am curious about Bob and Susan's comment that most Baja B&B visitors aren't looking to interact with nature,  . Were you guys being ironic (which I often miss in this sort of forum) or are you
trying to tell me something important? If it's the latter, would you mind expanding on that thought a bit? If you were kidding, please forgive my
density.
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mcfez
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I think you need to go after the sportsman..........................
Old people are like the old cars, made of some tough stuff. May show a little rust, but good as gold on the inside.
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Bob and Susan
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no YOU said...
Originally posted by Islandbuilder
.... Most of the folks we have gotten to know through our charter business are wildlife photographers and natural history enthusiasts....
these are not baja b&b visitors...they will NOT be staying in your B&B
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Islandbuilder
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| Quote: | Originally posted by mcfez
I think you need to go after the sportsman.......................... |
Good advice!
If we were to do that, it would be in concert with a local sport fishing outfitter. Our goal would be to raise the economy of the entire community,
not just corner the market and cover every paying activity we could. I'd rather work with other local businesses rather than against them.
I am intrigued by the growing interest in kayak fishing, and flyfishing for saltwater species. But have little experience to go with that interest.
On our boat in Alaska we have pretty much stopped offering on-board sport fishing, and instead refer guests interested in salmon fishing to day boats
in either Petersburg or Juneau.
We try and focus on what we're best at, and let the fishing guides do the same, the result, I hope, is a win/win for everyone involved.
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