Category Archives: Business Entity Selection

Reporting Required for Entities Under Corporate Transparency Act

A new federal reporting requirement for most small business entities will impact a number of farms, ranches, and agricultural businesses who have organized as a business entity such as an LLC, corporation, or limited partnership.  We’ve got the answers to your questions below! Why? The Corporate Transparency Act is a law enacted to prevent money laundering, corrupt financial transactions, and financial terrorism.  As part of that effort, the Act requires the United States Department of Treasury’s Federal Crimes Enforcement Network (FinCEN) to maintain a national database of beneficial… Read More →

March 24, 2023 Weekly Round Up

Hello from Ft. Worth!  We’re excited to be at the Texas & Southwestern Cattle Raisers Convention this weekend.  If you’re here in Cowtown, be sure to say hi! Here are a number of ag law stories in the news over the past couple of weeks. *Numerous challenges filed against Biden WOTUS definition.  Brigit Rollins at the National Agricultural Law Center recently published a great article outlining the legal challenges currently filed against the Biden WOTUS definition.  [Read article here.]  Since this article, a federal judge here in Texas… Read More →

November 11, 2022 Weekly Round Up

Happy Veteran’s Day, and thank you to all who have served. We’re back again with a number of developments in the agricultural law world over the past few weeks. *PRF Deadline December 1.  Don’t forget that the deadline to sign up for Pasture, Range & Forage insurance (commonly referred to as “rainfall insurance”) is coming up on December 1.  To read more about this insurance option, click here.  For a detailed discussion of PRF and the decisions a landowner must make during sign up, click here for a… Read More →

Business Entity Selection Series: 4 – Limited Partnership

Today we continue on in our Business Entity Selection Series.  If you missed any prior posts, click here. What is a limited partnership?  Texas law defines a limited partnership as a partnership having one or more general partners and one or more limited partners.  See Texas Business Organizations Code Section 1.002(50).  General partners may participate in the control of the business but are not given any limited liability.  On the other hand, a limited partner is afforded limited liability, but may not participate in the control of the… Read More →

Business Entity Selection Series: 3 – General Partnership

Today we continue on in our Business Entity Selection Series.  If you missed any prior posts, click here. What Is a General Partnership?  Texas law defines a general partnership as “an association of two or more persons to carry on a business for profit as owners…regardless of whether the persons intend to create a partnership or whether the association is called a ‘partnership.’”  See Texas Business Organizations Code Section 152.051.  Importantly, the definition of “persons” is not limited to individuals, meaning that other legal entities such as an… Read More →

Business Entity Selection Series: 2 – Sole Proprietorship

We will kick off this series with the simplest, most widely used business structure, the sole proprietorship. What Is a Sole Proprietorship?  A sole proprietorship is simply a single individual engaged in business activity.  The  2012 U.S. Census of Agriculture reports that nationwide, just over 86% of farms are sole proprietorships.  In Texas, that number is even higher at 90%. Governing Law:  Unlike the other entities we will discuss in this series, the sole proprietorship is not governed by statute.  There is no provision in the Business Organizations Code to govern sole proprietorships…. Read More →

Business Entity Selection Series: 1 – Introduction

Today I am excited to kick off a new blog series that provides an overview of different business entity options for farmers and ranchers.  This was a topic that Amber Miller and I recently discussed on the Ag Law in the Field Podcast #5.  At presentations, people often ask me whether having a general partnership is a good idea or whether an LLC is the best business entity.  I wish it were that simple, but as with most legal questions, there is no magic answer to the question… Read More →