Ohio farmers have many choices when selecting a business entity for their farm operations. The choice of business entity affects liability, taxation, management, and succession planning. Therefore, selecting a business entity should be given a great deal of thought and attention. Topic to be considered include: formation of the business, governing documents needed, cost of creation, personal liability of owners, taxation, management, raising capital, transfer of ownership, and dissolution and liquidation costs.
For more information on this topic, please refer to the OSU Extension Factsheet “A Comparison of Business Entities Available to Farmers” available at the following webpage:
http://ohioline.osu.edu/anr-fact/pdf/3613.pdf
This Factsheet and others addressing issues related to Farm Transition Planning are available at:
http://ohioagmanager.osu.edu/resources/index.php
Should you have questions, contact Barry Ward at ward.8@osu.edu