Custom farm work is a great way to diversify a business. It can provide supplemental income but can also add extra risk and exposure to your primary farm.
Todd Janzen, a partner at Plews Shadley Racher & Braun LLP in Indianapolis, Ind., says it makes legal sense to structure any type of custom farm service as a separate business.
"The main reason to set up a new company for your custom work is not to avoid liability," Janzen explains. "It’s to make sure the liability stays connected to the custom business and not your farm."Continue reading the rest of the article on AgWeb's page: Reduce Liability.