Business Organization For Family Farm Operations

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Family Farm Operations
Brittany McKenzie
ACCT 511-D02
May 7, 2015

As an accountant, I will be selecting the best form of business organization for family farm operations that can offer various problems to professional attorneys. Family farms with a lot of land space are typically held as a major asset. Furthermore, there are issues that would most likely to occur when the farm is passed to family heirs, which can take a major toll on the business and estate-planning attorney. In 1988 the Internal Revenue Service (IRS) classified a limited liability company in Wyoming as a partnership for federal income tax reasons, since then all 50 states and the District of Columbia have approved statutes permitting the creation of …show more content…

Alex, Bill, Carl, and Devon’s father ran the business as a sole proprietorship, but they want to form a business entity to own the farm. I am going to be their accountant to help run their business the proper way and right way as Christians should. They are trying to avoid a lot of paperwork, but they also want to allow their cousin Xavier to handle the day-to-day operations of the farm. Additionally, they want to know ways to minimize their taxes on the entity. They want to keep this a family business; they do not want a stranger owning any part of their business. I think this can be a great thing if their family is on one accord and want to expand the business. When you start having outsiders, they could come in a try to turn things around within the business and make a lot of unnecessary changes. With Xavier being their cousin, I think they have a plan that will make the business successful.
As stated above, in this case the form of business organization used by the deceased father is a sole proprietorship. A sole proprietor is someone who owns an unincorporated business by himself or herself (Sole Proprietorship, 2015). This form of business organization is a business in which one person is in control of the management and profits. A sole proprietorship has its disadvantages and advantages. With being a sole proprietor, you have complete control of the management of the business. Everything is left in your

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