Operating an orchard as a LLC
What are the advantages and disadvantages operating an orchard or vineyard as a LLC?
Berrien County Michigan
There are many advantages. I strongly encourage many farms to look at such options. In many cases (situation dependent) multiple LLC's are developed for the one farm.
1.Dependent on situation it acts as a formal agreement with specific detail on owner-ship, expectations for all owners, and specifics as part of the Buy-Sell Agreement on how the LLC may be dissolved under various situations.
1A. More formal than a Sole Proprietorship or informal partnership
2. Liability Protection from various aspects
3. It can be beneficial during Farm Business Succession/Transition Planning
4. Easier to maintain than an S-Corporation or a C-Corporation
Negatives. You must pay your $25 to the state every year to maintain LLC.
Although documents linked below were written a in the 90's many of their points are still relevant.