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Staff Paper No. 473 - Abstract

Limited Liability Company: A Farm Business Arrangement Alternative

Mary Meehan-Strub
Philip E. Harris [peharris@wisc.edu]

Staff Paper No. 473, April 2004, 22p.

Abstract

During the last decade of the twentieth century, a new and unique business entity alternative emerged - the limited liability company (LLC ). Prior to that the sole proprietorship, partnership, and closely held corporation were the basic ways to organize a farm business.

Effective January 1, 1994 , Wisconsin allows the formation of LLCs under chapter 183 of the Wisconsin Statutes. This form of doing business is likely to be the choice of many small businesses that would have chosen the partnership or S corporation form of doing business. When properly formed, LLCs give the limited liability of corporations but the tax characteristics of a partnership, and control over participation in management.

Last updated on Thu, Jun 2, 2005 8:46am