bigbluegrass
Well-known member
What are reasons any of you who use an LLC have your farm set up that way? I am trying to understand the various advantages and disadvantages of setting up a farm as an LLC.
Farm LLC
- Thread starter bigbluegrass
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Rydero
Well-known member
Lower taxes (in Canada anyway), less personal liability, makes succession easier. I think they recommend $250000k sales for it to be worth it in most cases here.
I always use S corps. Same tax advantage and legal protections, just a lot more things you can do with the S corp. Cost the same to set up, too. Either id better than a sole propriter or partnership, though.
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bigbluegrass
Well-known member
How does an LLC make succession easier?
I will need to look up S corps.
I will need to look up S corps.
Rydero
Well-known member
Sorry I mistook an LLC as a term for a full on corporation which it isn't. LLC's don't really exist in Canada. I'm not sure a LLC will help you in that way.
The way an S corp makes succession easier is it is just a matter of transferring stock certificates. Every horse, saddle, cow, equipment, tractors, a time share, even....everything you can think of down to a claw hammer....is all bought by and owned by the S corp. at the reading of my will, there is so need to go over all of my possessions. This is not even addressed in the will. This one S corp I am thinking about now, I started with $500....500 $1 shares. I am the only stock holder. so, my will need only say " Son gets 250 shares and daughter gets 250 shares. "
Mrcopier
Well-known member
Get with a good accountant he can explain the difference. I have a llc on my business
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bigbluegrass
Well-known member
Thanks
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bigbluegrass
Well-known member
I had to spend some time reading up on S corps, but I think I am starting to understand how they work. I can see how an S corp could make succession easy.
littletom
Well-known member
I have a LLC on my farm for likely different reason than anyone crop insurance. Here as sole owner you have to have the same insurance on every farm in a county. I farm in 2 counties so i can more in one less in another my choice. But most of my farms are in one county. If i put good insurace on all of it and protect my investment it is to expensive to stomach. If i put alot less bill is less but one hail storm up the creek in a bad way. So some farms have more some less some as me some as the llc. Last year my part of crop insurance bill was 51000 dollars so i'm just trying to hedge.
