I've had a little experience with corps and land.......

First, most LLCs are taxed as partnerships, and therefore there is no double taxation if you are using an LLC.

If your tax person does not know that, you are in a world of hurt for taking any advice from him on this matter.

If the LLC elects to be taxed as a corp........why would you monkey with an LLC, and not get the employee benefits related to a regular C corp??

MN is in the 8th Circuit, which has not yet settled the question of rent paid to an individual by his operating corp for ag land under production being taxed by self employment taxes.  The 8th is the only Circuit in US (I believe) that allows any deviation from the requirements of Section 1402, which requires the rent received by a landlord who materially participates in the production of commodities on ag land to be taxed as self employment income.

Resultantly, the usual set up under current tax law-----------C corp is used to own operations, and S corp owns the land.

Allows the employee of C to get much employee benefits related to C corp, while washing the rent income that goes from C to S so that the rent does NOT get hit with SE taxes.

Having your wife and kids involved in ownership is admirable.........but is asking for headaches down the road.

Double taxation only occurs with a C corp..........partnerships (LLCs so electing) do not have that concept, and neither do S corps.

Fortunately, this is America, and you're free to act as you see fit---------but when compared to the norm--------you're getting poor advice if all your tax person can do is tell you to stay away from a C corp owning land.

Talk with an old dog CPA who handles taxes all year.  Stay away from the local attorneys on these types of matters-------unless they are in fact tax attorneys, ie practicing tax law all year..............most attorneys who do tax returns do such only during the tax season, and are merely compliance artists.