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Farm4Profit Podcast

Finding the Right Entity Structure for You

Mon, 16 Jan 2023

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Working Draft - Ag LLC OutlineAiring 1/16/23 Welcome to a Farm4Profit episode Remind people to hit SUBSCRIBE – REMEMBER TO LEAVE REVIEWS The listener review today is brought to you by DeereFacebook – Barbara GonzalesKeep up the good work!Go subscribe to YOUTUBE!!!        Play Legacy Farmer Segment Guests: Ryan Haaland is an attorney who assists clients with real estate projects, business formation and transactions, and estate planning. He works with clients of various sizes, from large national companies to smaller local entities in all aspects of business. He assists ag clients, from family farm startups to larger ag entities, both as it pertains to real estate acquisitions and sales and assisting in corporate structuring and governanceIntro: Some believe that you need to be a big operator or land owner to justify forming an entity for their operation. Some believe that having the operation owned by a company makes them less attractive because of the corporate “look”. The truth is that structuring your farm operation using one or more business entities is an efficient tool (bang for buck) to protect farmers and their business, and that doesn’t require substantial change in manner of operation.  Limited liabilityProtects personal assets from liability related to the businessEven if you own a short 40 and lease the ground out, LLC might be a good idea.  Protects the dirt from exposure to risk related to personal liability (e.g. you’re at fault for a car accident, the farm is at risk)Want to isolate value from risk using multiple entitiesLLC – PartnershipLLC – S CorpS CorpC CorpPotentially limits partners (e.g. non-family farm entities)Same entity must buy and sell Imposes structure on owners Useful estate planning   General Issues Anything else you’d like to share?What is your top tier of clients doing differently? Pay Off Question: How do you define success? Summary Challenge      

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