Home > Commercial law > Today’s farm: minding your own business!

Commercial law

Today’s farm: minding your own business!

Generally, a farmer’s most important asset is the farm itself, and the incomes of several generations are sometimes directly dependent on it.

There often comes a time when, in an effort to create a more secure sense of belonging or for other reasons, the owner of a farm wishes to make members of his or her family active partners in the business.

This desire to make the farm a true family business, for whatever reason, usually involves the transfer of a portion of the farm during the owner’s lifetime, requiring the setting up of a new legal structure.

Your farm’s legal structure

Your notary can help you make all the necessary decisions concerning your business’s legal organization. Of course, each situation is different and some cases can prove to be quite complicated. With your approval, your notary will not hesitate to call on the services of specialized resource people as appropriate or necessary. You can thus be assured of the best possible legal structure for your specific needs.

Your notary can describe the advantages and disadvantages of a joint-stock company, a limited or general partnership, or even a joint venture. Your notary can also inform you of the legal and tax consequences of each possible alternative.

You will know exactly where you stand regarding ownership of the property used by the business in the normal course of its activities and the extent of liability in the event of legal proceedings.

The information supplied by your notary will also allow you to clearly distinguish between your own and your company’s tax situation.

Once the decision has been made concerning the proper legal structure for your project, your notary can immediately begin to prepare all the documents required for the company’s incorporation or for a partnership agreement.

To follow up on the idea of keeping the company under family control, your notary will also ensure that all the necessary sale and purchase agreements are drawn up and signed.

Once your company is equipped with a legal structure perfectly suited to its needs, your notary will then proceed with all of the necessary follow-up work and ensure that all relevant licenses and registrations required by law are applied for and received.

A new corporate structure will often mean reviewing your financial and estate planning strategy. Your notary will go over the terms of your will with you and help you plan your estate in such a way as to ensure the continuity of the business while maintaining a balance between the heirs.