Thinking about setting up an LLC or similar

[TroutBrookSH]

Any other Traders already either incorporated or established a Limited Liability Corporation (LLC)? Thinking LLC makes the most sense for an individual. I'd like to protect personal assets, right off expenses, set up DBA account (maybe get a loan for a small RO!), and report a modest income. Of course expenses will outpace the income! Any ideas or experiences appreciated.

Greg

[cncaboose]

You can set up an LLC if you want to feel safer from an insurance standpoint. It is more paperwork. I have good liability insurance coverage specifically for the "farm" so that if someone gets hurt visiting the sugarhouse I don't have to worry. Many insurers won't cover sugarhouses and other farm property. If you have trouble finding coverage check out Farm Family available through Farm Bureau. On the financial end you can file a Schedule F for farms with your tax return, whether you are an LLC or not. You just need good records for income and expenses. You may need to talk to a tax person if you are going to get into depreciating equipment like tractors, etc to make sure you get that all correct. I use First Pioneer Farm Credit for my tax work since they specialize in farm financial stuff. Bottom line is don't make it more complex than it has to be since if this isn't fun it's not worth doing any more.

[RileySugarbush]

We set up an LLC for our longboard/skateboard manufacturing company. We want to protect personal assets from liability related to the product and liability insurance would be incredibly expensive. Setting it up was easy in MN. All over the internet and it cost about $175. You need to keep all expenses separate.

[DaveB]

We too use Farm Family for our insurance to insure our home and farm operations. The liability covers our home and incidents related to the farm. I'd really recommend them. I use the S Corp convention which is a lot easier to setup and maintain. We filed the DBA with our town which allowed us to open the proper bank accounts.

Bottom line, for a little more cost than your home owners policy you can get the protection you want/need and have the other 'benefits' that you are looking for.

Dave

[Amber Gold]

We just switched insurance companies from Allstate. Their rates went through the roof for my base insurance and if I wanted to get my maple operation covered and minor plowing covered it was going to be more. My new insurance company is out of Vermont and I'm pretty it's Farm Family. I'm getting the same base coverage plus getting a farm policy added on and the plowing covered and for a cheaper rate. My broker is located in NH and is a Mapletrader member and if anyone's interested I can put you in contact with him.