| T O P I C R E V I E W |
| kentuckywoman |
Posted - Apr 29 2011 : 08:04:16 AM
Hi!
My fiance and I are in the early planning phase of starting a farm and want to make it into a legal entity so that we may apply for a Beginner Farmers Loan from the FSA and various grants. He has been in beekeeping since a small boy and is so wonderful at it! His father has a beekeeping and honey home business but we want to branch out on our own to offer other things too, like fiber, niche grains and heirloom and biodynamic fruits and vegetables.
We are unsure as to how we should structure the business- LLC, sole proprietorship, etc? It would just be us, no other investors or partners.
Also, does anyone have any advice about what the next steps are, or how difficult it is to get the Beginner Farmers loan? I have done grantwriting before and want to try to write some as soon as we get this started up. Do we need to have a location already chosen for the farm before we can get a loan? He has perfect credit and plenty of good, documented experience on farming, and I have the passion and have studied and learned about agricultural and homesteading skills over the past five years or so.
Any advice at all will be wonderful! |
| 5 L A T E S T R E P L I E S (Newest First) |
| kentuckywoman |
Posted - May 05 2011 : 09:04:38 AM
Thanks for all the advice so far!
Megan-- I think I'm even closer than what my profile info says! We are living in Versailles right now! We have been looking at locations for the farm a little east of Lexington, but still aren't sure of a spot yet. We are hoping for around 20-30+ acres, an older farmhouse, and farm buildings in decent shape on the property. If you have any ideas of anything out in your area, pass them along!
Also, I checked out your blog and loved it! I'll definitely be keeping up with it! I want to start one when we get onto the farm for sure. |
| walkinwalkoutcattle |
Posted - May 04 2011 : 4:20:27 PM
Hi Majal! I don't have much tax advice, as we hire an accountant, but I'm not too far away from you! :)
Farmgirl #2879 :)
Starbucks and sushi to green fried tomatoes and corn pudding-I wouldn't change it for the world.
www.cattleandcupcakes.blogspot.com
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| JojoNH |
Posted - May 02 2011 : 11:18:11 AM
Please be sure to check with an accountant!! There are legal aspects to an LLC. . . and you need to be sure you are filing all the right papers, fees, etc etc. Also, things vary state to state. . . just because your registered as an LLC does not exempt you from a lawsuit.
There is a lot to each one of your options and you really need to get a professionals input on all of this. 
Joanna #566
JojoNH
www.countrycents.com
http://www.etsy.com/shop/CountryCents
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www.JoannasHomeStudio.com "Keeping traditions alive a stitch at a time"
http://twitter.com/NHJoanna |
| natesgirl |
Posted - Apr 29 2011 : 5:46:06 PM
I know from a bad experience that if you structure it properly and have it as a LLC you are completely protected from liability.
We hired a construction company to add an addition to our house. They caused some major damage to the original structure and the rooms in the new addition aren't tall enough to pass inspection for living quarters. They are only good for storage rooms and we have to have nearly $10,000 dollars of repair work done now.
They are list as a LLC, so only what is listed as actual business property is available to be sued. That amounts to a box of business cards, some notebooks with the company letterhead on them, and $86 in the business account.
He makes sure that he puts only the daily expenses in his business account and that all equipment and such is in his wifes name.
Talk to a lawyer and they can explain how to juggle everything so no one can sue you for any reason with the LLC thing.
I just wish this guy wasn't such a creep. We got took for a bad ride.
At least it left me with a better understanding of the legal side of business.
Farmgirl Sister #1438
God - Gardening - Family - Is anything else important? |
| Dusky Beauty |
Posted - Apr 29 2011 : 3:39:03 PM
I've been looking at getting a USDA loan to purchase a "hobby farm" and opening up a business in a shop building on property as a side thing. Hope someone has some info for you, because I'd like to know more too!
"After eating an entire bull, a mountain lion felt so good he started roaring. He kept it up until a hunter came along and shot him. The moral: When you're full of bull, keep your mouth shut.” ~Will Rogers |
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