chevron_right

Entities Training (English Version)

This section highlights the importance of choosing the right business structure for agricultural operations, such as LLCs and S-corporations, which can limit personal liability. It explains federal tax filing requirements, noting that non-sole proprietorship entities must file separate tax returns, with specific rules for LLCs and S-corporations. It also touches on how farm program payment limitations might influence the decision to establish such business entities.

4. Entities Evaluation

Be sure to click outside the answer field after answering each question to prompt the next question.

1. How many people own the farm/ranch business?

2. If the farm/ranch business is owned by two or more people who are not married - do they (do you) file a partnership tax return (Form 1065) or do you file taxes as an S-Corporation (Form 1120-S)?

3. If you file taxes as a partnership, have you created a limited liability company (LLC) or limited partnership to operate your business?

4. Are you interested in creating a separate entity for your farming/ranching/fishing operation to limit personal liability?

4.a Is your business consistently profitable and do you consistently pay self -employment taxes on close to $100,000 of net farm/ranch income?

4.b If your business is consistently profitable and you consistently pay self -employment taxes on close to $100,000 of net farm/ranch income, have you asked a CPA to help you determine if you might benefit from filing taxes as an S-Corporation?

5. Are you interested in bringing the next generation, or another unrelated person into your farming/ranching/fishing business?