Hello, I recently joined because I am wanting to register a cattle brand. However, I do not know if it's better to list the brand ownership under a ranch LLC or under my personal name. Not sure if there are benefits to either as I am still new to the cattle industry. If anyone could give me their thoughts on what you do and why you like it or don't like it, I would appreciate it! Thank you in advance!
Should I put my cattle brand under an LLC or Personal Name?
- Thread starter izzy22
- Start date
Who is going own the cattle? You or your corp?
I am going to own the cattle. If I list the brand under my name, can I sell cattle with that brand under my LLC? Is there some kind of document that needs drawn up for that?
If you would go back and enter your location on your profile, people could give you better answers, Different countries have different laws regarding corporations.
Dave
Well-known member
That becomes a question for an accountant. Can something you sell under your name be listed as income for your LLC. I went and looked at the Oregon brand book which includes a list of all the brand owners. Probably less than 1% of the owners are named as an LLC. I saw several listed as XYZ company and /or inc. There was 2 huge corporations (Beef Northwest and Simplot) that have there brand listed as just the company name. No inc. or ccompany listed in the owners name. There might be others but there is over 10,000 registered brand in the state. I happened to notice the first one so I went and looked up the other one.
GoWyo
Well-known member
Our brand is held in the name of the LLC and all cattle are owned by the LLC and when cattle are sold the check goes to the LLC. Depending on your state's laws, you could hold the brand in your own name and lease it to the LLC.
What purpose does your LLC serve? Why would you divert income from your cattle sales to the LLC if it doesn't own any cattle?
What purpose does your LLC serve? Why would you divert income from your cattle sales to the LLC if it doesn't own any cattle?
I don't have an LLC yet, I wanted to get insight before creating one. But the objected of the LLC I am considering is for management of a small cattle operation, my own contract labor cowboy work for local ranchers , and contract labor semi truck hauling during harvest for local farmers.
simme
Old Dumb Guy
Be aware of this issue. In this area, banks might not accept a check for deposit to your personal account if it is made out to a company you own. You have to have a bank account with the company name. And need to show the paper work showing that the company is set up and registered with the state in order to open the company account. Something about money laundering laws, I think. Some people may have a "farm name" for their operation, but not set it up as a legal entity - no paperwork. If they receive a check made out to that farm name, some banks are very reluctant to accept the check for deposit to your personal account and may even refuse.
chevytaHOE5674
Well-known member
My cattle, equipment, and land are all "owned" by an LLC. The LLC has a bank account and everything is bought/sold from that account.
Makes keeping separate business/personal finances easy.
Makes keeping separate business/personal finances easy.
GoWyo
Well-known member
If you file an LLC, then you will also need a Employer Identification Number (EIN) from the IRS and file a separate tax return for the LLC every year. If it engages in ranching and farming it will file a Schedule F with the return. If you are engaged personally in ranching and farming, then you file a Schedule F with your personal return. The LLC is a separate entity from you to shield liability to an extent. Are you looking for the liability shield?
Who owns the semi truck you would be driving? If the farmer, then you are just contract labor and receive a 1099 form to report what is paid to you. If you own the truck, that can be a whole other analysis and there are a lot of requirements for commercial truckers.
There are extra expenses associated with having an LLC, so that needs to be considered in whether you actually should have one.
Our LLC owns the ranch and the LLC is owned by a trust. I am the manager.
simme
Old Dumb Guy
An LLC with only one owner can file one tax return covering both business and personal. Or can file the business taxes as an S corp and a separate personal. My daughter's business is a single owner LLC. From the IRS website:
"Owner of single-member LLC
If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return. If the owner is an individual, the activities of the LLC will generally be reflected on:
If the single-member LLC is owned by a corporation or partnership, the LLC should be reflected on its owner's federal tax return as a division of the corporation or partnership."
"Owner of single-member LLC
If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return. If the owner is an individual, the activities of the LLC will generally be reflected on:
- Form 1040 or 1040-SR Schedule C, Profit or Loss from Business (Sole Proprietorship)
- Form 1040 or 1040-SR Schedule E, Supplemental Income or Loss
- Form 1040 or 1040-SR Schedule F, Profit or Loss from Farming
If the single-member LLC is owned by a corporation or partnership, the LLC should be reflected on its owner's federal tax return as a division of the corporation or partnership."
Mrcopier
Well-known member
I’m with Dave, check with your CPA. He would know the ins and outs of why you would or wouldn’t do it
