My wife and I are starting a small commercial cow/calf business in partnership with her parents, who are primarily investment partners. We've agreed to put in matching funds and share expenses 50/50, however, I'll be doing most of the work with the cattle and pasture maintenance. I was raised up in the cattle business in TX, but never had much experience on the paperwork end and want to keep this business structure as simple as possible, but legal and free of IRS audits. Do we need to file a DBA and set up an official "Partnership" business through our county clerks office? How do we handle year end taxes? We definitely want a separate bank account from our personal to manage transactions. Any recommendations on account type? I'm all ears!
Commercial Cow/Calf Partnership
- Thread starter ace
- Start date
Help Support CattleToday:
Caustic Burno
Well-known member
ace":olrlntrh said:
I would be seeking advice from a legal professional and not a bunch of redneck's and hillbillies.
There is no parole from the federal pen.
Partnerships create a different problem when filing taxes. You will probably have to form an LLC and file a partnership return for the cattle operation. The partnership return will generate a K-1 for each partner which will then go on your personal return. I would also advise you to get professional help setting this up before starting as it will prevent many headaches later on. If you start without doing it correctly , it is a b*tch to get corrected with the IRS. Good Luck!
backhoeboogie
Well-known member
You start out with them providing most of the input then you say 50/50. I don't get that part. Sort of makes the BS flag fly up the flag pole. So I didn't post a reply.
Why enter a partnership in the first place? You cannot afford the program you want.
Some times partnerships work out. I wouldn't want to go that way. If you have differences you are going to put a strain on your wife.
If you two want to run cows together, go for it. You have your cows and they have theirs. Split the land or lease.
Parents pass away. Many times it is unexpected. My father-in-law had a heart attack @ 52. He was a great person.
Why enter a partnership in the first place? You cannot afford the program you want.
Some times partnerships work out. I wouldn't want to go that way. If you have differences you are going to put a strain on your wife.
If you two want to run cows together, go for it. You have your cows and they have theirs. Split the land or lease.
Parents pass away. Many times it is unexpected. My father-in-law had a heart attack @ 52. He was a great person.
Over the years, I have had many offers to go in partnership with people I know. My response is ALWAYS the same. "Let's not go into a partnership. I would rather remain friends!"
The only ship that can't stay afloat is a partnership. Run seperate operations and let them pay you to take care of theirs. ;-)
