Incorporating a farm
From a farm operation to a limited liability companyAre you planning on incorporating your farm as a limited liability company?
Incorporating a farm is often justified when the farm operation is profitable. Incorporation typically improves the efficiency of financial performance, which is useful for the farm’s management.
We can help you plan turning your farm into a limited liability company
One new aspect to consider in a limited liability company is the balance sheet. The balance sheet affects how easily the new limited liability company can obtain financing. As your partner, we help you secure your limited liability company’s ability to make investments in the future.
If you’re planning on incorporating your farm, be sure to get in touch with us ahead of time! Useful questions to ask before incorporating:
- What is the minimum monthly salary you want to receive?
- What is your farm’s typical profit in a single financial year?
- What level of equity does the company require in order to pay dividends in the future?
- How will your affairs with the authorities and the bank change after your farm is incorporated into a limited liability company?
- What are the benefits of incorporation? Can you think of any downsides?