I am looking at buying a small amount of land (40-80 acres). This is mostly for a place to hunt/camp, and potentially build a house in the future. But most of the land I am looking at also has some tillable ground, so will be likely be rented out to a farmer on a cash-rent basis. The income will be small, 3-6K a year, from the farm rental.
Is there a need for an LLC? My thought is no. State Farm says I will need a farm insurance policy (similar to a homeowners policy), and my $2 million umbrella policy will provide liability coverage on top of this. My CPA says any farm-related expenses can be deducted on my personal tax return.
I like simplicity, so prefer to avoid an LLC unless I hear a good argument for one.
Is there a need for an LLC? My thought is no. State Farm says I will need a farm insurance policy (similar to a homeowners policy), and my $2 million umbrella policy will provide liability coverage on top of this. My CPA says any farm-related expenses can be deducted on my personal tax return.
I like simplicity, so prefer to avoid an LLC unless I hear a good argument for one.
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