LLCs and Operating Agreements: Should a farmer go to the trouble?

LLCs are easy to form and very flexible. Because of this, writing an operating agreement can help a farmer think through all the details of how to address investments, profits, and losses. Good bookkeeping is also important to optimize a farm’s tax situation. What’s the situation? Farmer Espen formed his business as an LLC so he can protect his personal assets from liability. The filing process was pretty easy, and Espen is headed into the farming... Read More

LL-See how easy it is?

Farmers have the option to form their business as a limited liability company, an entity that offers liability protection to the farmer’s personal assets. Filing is fairly easy after you learn a few key words in the Articles of Organization. What’s the situation? We have a friend named Espen. Espen has years of intern experience on all the local farms, plus enough savings to make it through the first season, so he’s starting his own farm.... Read More

The legal line between farm business and farmer

Farming is a business and a way of life. But, if a farmer is expecting liability protection for her personal assets, she might want to keep the distinction between personal and business matters clear, at least when it comes to accounting. What’s the situation? After pondering how risky a farming career can be, and the debt she’ll take on to get it started, Farmer Jamie decides she wants to protect her personal stuff–like her car and her... Read More