Finding the right legal structure for your farm can be overwhelming. From liability and taxation to overall sustainability. It’s not a one-size fits all approach. 

“While sole proprietorships and partnerships offer simplicity, they also come with inherent risks, as personal assets are exposed to business liabilities,” explains Rachel Armstrong, Executive Director of Farm Commons. “Alternatively, corporations and limited liability companies (LLCs) provide a layer of protection by separating personal and business assets, thus mitigating risk.”

However, merely establishing a legal entity is not enough to ensure success. Equally important is the creation of governance documents, such as operating agreements for LLCs and bylaws for corporations. These documents outline key aspects of the business, including ownership structure, decision-making processes, and dispute resolution mechanisms.

Finding the right legal structure for your farm can be overwhelming. From liability and taxation to overall sustainability. It’s not a one-size fits all approach. 
“While sole proprietorships and partnerships offer simplicity, they also come with inherent risks, as personal assets are exposed to business liabilities,” explains Rachel Armstrong, Executive Director of Farm Commons. “Alternatively, corporations and limited liability companies (LLCs) provide a layer of protection by separating personal and business assets, thus mitigating risk.”
However, merely establishing a legal entity is not enough to ensure success. Equally important is the creation of governance documents, such as operating agreements for LLCs and bylaws for corporations. These documents outline key aspects of the business, including ownership structure, decision-making processes, and dispute resolution mechanisms.

Join Pam Jahnke for the latest farm news. Heard daily on WOZN 96.7 FM and 1670 AM in Madison Wisconsin from 5-6am. Also heard on affiliate stations all over Wisconsin.

Join Pam Jahnke for the latest farm news. Heard daily on WOZN 96.7 FM and 1670 AM in Madison Wisconsin from 5-6am. Also heard on affiliate stations all over Wisconsin.

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