[FreckledFarmer]

Someone with business experience.... We need to set up the farm's business as an LLC in the next week or so. Do we do the FARM as the LLC so that everything we sell (kids, soap, etc) will falls under the business OR do we set up the soap business as the LLC (the soap company's name includes the farm's name). We will rarely be selling anything outside of the soap company but DH wants to set up the business as just the farm... I'm unsure about the business name being just the farm when we are selling under the soap company's name.... Make sense? So do we set it up as The Farm, LLC or The Soap Company, LLC

 

[Curious]

We have an LLC and supposedly it umbrellas any other forms of business for the farm. i.e. Eggs, and/or dairy products that go by a different name than the farm.

 

[FreckledFarmer]

SO you suggest that we do the LLC for the Farm and not the soap business?

 

[Curious]

That's what we do, and it has proven an enormous boon.
I don't want to lead you in the wrong way...this is just what has worked for us. That way whenever our flock of chickens got eaten, we used it as a tax writeoff, whereas if we had only made our goats or garden our business, we wouldn't have been able to do that.

 

[ksalvagno]

Personally, I would go talk to a lawyer about it and figure out which would be the best. Your farm has to be big enough to not be considered "hobby". The government is getting pickier about stuff so I would just make sure which would be best.

 

[Curious]

Personally, I would go talk to a lawyer about it and figure out which would be the best. Your farm has to be big enough to not be considered "hobby". The government is getting pickier about stuff so I would just make sure which would be best.

That's a good idea. We have a large piece of acreage (100 acres) so are easily considered a farm.

 

[AmyBoogie]

LLC - you can set it up as your name even. It's more of a tax liability. You can set it up and just file everything under that one heading. Everything for the farm and the soap can be filed under one heading.

If you have an accountant they can help you with it but it might not be worth the expense of having someone do all that for you. It's not hard to set up but you may want to read up on what being an LLC gives you as opposed to what it does not do.

We went through all this legal mumbo jumbo for this and chose to do a different type of corp status.

 

[FreckledFarmer]

What time of corp status are you? I have a photography business and it's set up as an LLC. I emailed my accountant, hopefully she will have an answer. I feel bad I am always asking her questions. Why does this stuff have to be so confusing!?

 

[AmyBoogie]

It's not my farm that's set up as a corp. We're just hobby farmers. I run a business and we ended up setting up an S-corp. I would run any business under that now that we have that set up.

I figure it's confusing so accountants can have a job

It was my accountant that helped me immeasurably in deciding which one we needed to set up.

 

[Tapsmom]

An LLC is not too difficult to set up at all, but the laws and wording may vary by state. As far as taxes go, a signle member LLC is a "diisregarded entity" as far as the IRS is concerned so the tax burden or savings would pass through to you personally. Your accountant should definitely be able to help you with that. You should not feel bad about contacting them..that is what they are there for. I know this because that is my non-farm job

 

[enchantedgoats]

We are in the same boat. Tax man says to do llc and keep the farm money in a different account.