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Southwest Illinois | If it is just you then I can't see any benefit. Not much liability protection if any since if it is just you then most likely you will be the one operating the equipment so you would be exposed personally as well.
If it is you and another partner then the LLC has some benefits. If it is you and say your father it can be easier to transition his ownership to you. I know one operation who has multiple LLC's and they run all their poor/high risk ground under one LLC then take insurance out(at very high levels) using enterprise units, then they take all the good ground in another LLC and carry minimal insurance on it. Kind of crooked in my mind but I guess it works as I know they save lots of money on insurance premiums.
Depending on the state C corp taxes are a big consideration.
You will get a lot of opinions and quite frankly the only one that matters is the one of your CPA. I live with one and the CPA who does our operation both thought it was the best fit for our operation. Personally if you need a forum to make business structure decisions you don't have near enough professional help. Remember the opinions you get here are worth exactly what you paid for them, mine included. | |
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Benifits to Farming under a LLC
