Every agribusiness owner must choose a legal structure before registering with the state, obtaining any necessary licenses or tax IDs, and opening for business. That choice determines:
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Tax treatment: How and when you pay taxes
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Paperwork & compliance: Filing requirements, reporting and cost
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Liability exposure: How much personal assets are at risk
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Financing options: Ability to raise capital through loans or investors
In agriculture, where risks range from crop failure to equipment liability, selecting the correct form of ownership is critical. As you read each section below, consider how each structure would affect your ability to grow, manage risk, and transfer or sell your farm or ranch.
