Setting up a Livestock LLC

[Stocker Steve]

We have more and more folks building out in our area and some of them are always in a rush to get to town. We are considering setting up a livestock only LLC to reduce our liability if a critter gets mad and goes out on the road to attack an automobile. ;-)

Do you have any tips on things to consider before setting up a LLC?

 

[Wewild]

We have more and more folks building out in our area and some of them are always in a rush to get to town. We are considering setting up a livestock only LLC to reduce our liability if a critter gets mad and goes out on the road to attack an automobile. ;-)

Do you have any tips on things to consider before setting up a LLC?

Do a internet search for "Limited family partnership".

I haven't read this one much but here is an example of one.

http://www.rjmintz.com/appch5.html

PM me.

 

[Nowland Farms]

I've been thinking about setting up an LLC to own the cattle, to protect ourselfs. The only asset that the LLC owould have is the cattle.

Off subject but related, I recently set up an LLc for my wife since she is a physical therapist. This way if something happens and the LLC gets sued, there are no assets of the LLC. It not hard to do, just prepard the paperwork and recorded the documents in the county courthouse.

 

[Herefordcross]

LLC is just a stepping stone for a lawyer. It truly doesn't limit a persons liability, it just allows for tax diversions and other things we have two set up and anything you do you are still liable for such as if you have a wreck in an LLC vehicle, if you only or you and your spouse are members of the LLC, they come to you if the LLC doesn't give them what they want, if an LLC borrows money or credit cards or anything like that you still sign a personal guarentee. Either way you are responsible for what the LLC does. We did it so that we could be covered under workers comp and take reimbursed expenses and save some money on taxes. The best thing for anybody to do is to talk to their account and a reputable lawyer before hand because if it's not done right (transferring assets) you can lose deductions , etc. etc.

 

[jkwilson]

I've been thinking about setting up an LLC to own the cattle, to protect ourselfs. The only asset that the LLC owould have is the cattle.

My guess is the guy who owns the fences that the cattle went through would be liable too. Lawyers will just go after the fattest, easiest target. My preference is that they go after my insurance company. They have lawyers who deal with that kind of thing everyday.

 

[Texas PaPaw]

LLC will require another set of bookeeping, tax returns, liability insurance policy, etc. and they will still come after you personally. The biggest beneficiaries will be your accountants & lawyers.

Would suggest instead that you buy higher farm & auto liability limits. Should be able to buy a 1 million $ farm/personal umbrella liability policy for $200-300 year. Each additional million should be a little cheaper. This additional insurance costs me less than the accountant's fee for an additional tax return, not to mention the extra bookkeeping, LLC insurance.

 

[Wewild]

We kept the cattle in dad's name and the LFP rents the pastures to him. He has a .5% intrest in the LFP but he is the elected Director.

 

[MikeC]

My corporation owns the cattle and equipment and rents the land from me at fair market value. The rent is not subject to payroll taxes which allows me to keep the money all year instead of sending a portion to Uncle Sam.

Vehicles are another advantage. Try depreciating a personally owned vehicle. :lol:

The "individuals" as directors are absolutely shielded from corporate liability unless the "Corporate Veil" is pierced. (i.e. Caught breaking the law, etc.)

 

[Green Creek]

As in all things involving legal matters, a little bit of knowledge is a dangerous thing. Don't practice law with yourself as the client, the results could be a catastrophe.