Seperate Corp for Equipment

[mbratrud]

My Father-in-law and I have 2 seperate companies. The companies are in a joint venture, the percentage split is based on the land we own. Where we struggle is trying to keep the Equipment and other capitol assets straight and at the right percentages.
Is anyone out there using a seperate coporation for euipment that leases the equipment back to the primary farm operations. If so how are you finding its working.

[skip]

We are not set up that way but it would make business sense...you may have to lay it out with an accountant up front so that the income and expenses are allocated beforehand and discussed ahead of time.

Good luck

S

[ado089]

I've alway thought this would be a good idea, and taking it a step further if the land is privately held or it's own seperated entity. I figure if done this way the land and machinery would be protected in a bankrupcy situation. The trouble would be securing credit for the actual farm co. It does give you alot of options for moving money around to keep it out of the governments hands.

[Hopperbin]

How about making one corp out of the two, you can allocate shares as to how much farmland. Of course you would need councelling on a lot of other issues like an exit strategy when father in law quits or yourself, perhaps your wife should purchase your father in laws farm. Then all machinery and the CCA is used by one corp. Sounds so much easier to me. Making that third company sounds to me like an accountants dream come true.