Pinnacle Legacy Law

Limited Liability Companies With Special Agricultural Drafting

Powerful Protection

Limited Liability Companies (LLCs) with Special Agricultural Drafting can do the following:

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Purchase and sell agricultural products such as livestock, crops, farm machinery, produce, and supplies.

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Borrow money for related farm activities.

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Participate in farming co-ops and other forms of farming collaboration.

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Operate and maintain a farm business.

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Operate taxed agricultural activities such as animal husbandry and crop processing.

LLCs with special agricultural drafting cannot do the following:

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Engage in nonagricultural activities like real estate development or retail operations.

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Maintain corporate standing outside of the United States.

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Share net losses to nonmember owners or shareholders.

Limited Liability Companies (LLCs) with Special Agricultural Drafting offer a variety of advantages, including:

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Tax Advantages – LLCs enjoy favorable tax treatment, such as pass-through taxation, meaning profits and losses are passed directly to the owners.

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Asset Protection – Assets owned by LLCs are protected from the personal liabilities of its members.

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Flexibility – LLCs can be tailored to meet the specific needs of a particular farming business.

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Simplicity – When compared to other business entities, LLCs are relatively easy to set up and maintain.

When forming a Limited Liability Company (LLC) with Special Agricultural Drafting, there are certain things to consider:

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Business Name – The LLC must have an official name that follows state guidelines.

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Articles of Organization – The articles of organization need to be filed with the state.

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Operating Agreement – A detailed operating agreement should be prepared to provide structure and guidelines for running the business.

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Record Keeping – Proper record keeping is important in order to maintain compliance and evidence of ownership, operation, and financial position of the LLC.

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Taxation – Depending on the type of farming operation, additional taxes may be required or exemptions may apply.

Start protecting your legacy.

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