Ranching Partnerships

[TWOROPES]

My dad has two small operations on two seperate pieces of ground, a cow-calf operation, and a stocker-custom grazing outfit. I have always helped him as much as I can, I have a town job and custom cattle working outfit. My dad now wants to bring me in as a partner on his operations, and make it legal, which would greatly help me come tax time, as instead of just working other peaples cattle, I would have some livestock ownership. At the present time. I burn fuel, use some of my equipment when helping him, but dont get the deductions I would with part ownership.I wanted to know if you guys had any suggestions of one type of partnership over the other? We are going to talk to a CPA about forming an LLC, buit I want input from peaple who have been in legal partnerships and the advantages and problems that go with them. Thanks, ROPES

 

[Jinglebob]

When I got out of highschool, I went into partnerships with my parents. Justy a simple partnership.

There are some advantages to incorporations, but there must be disadvatages also.

Write down everything you can think of , especially pertaining to who provides what and the amount. Then you both have a clear understanding of who is responsible for what. And I do mean EVERYTHING.

Partnerships can be fine, but all parties need to have well thought out and agree'd on duties.

Good luck.

 

[IL Rancher]

This place we live on is owned by a corporation which in turn is owned by a LLC.. The cattle are not.. The reason it is a corporation was the old owners had to put it into a corp to save it from the tax man.. the bad news for them was when they went to sell it they hadn't waited the prerequisate amount of years so they couldn't break it without paying huge tax fees... Cost them a lot of cash as no buyers wanted to deal with it..

We have a simple cattle partnerhips with my grandfather, nothing to formal and it has worked well.. LLC's and such do have fees..