[lion]

For those of you that have incorporated your farm did you find that your account and lawyer where enough? Or is there a place for a management consulting firm?
Going through the process right now and wondering if a consultant could add anything?
I have a neighbor and friend that runs a consulting business and just wanted a few opinions before i call him if it would be a good idea.
I guess if he only brings in 1 good idea he could pay for himself.

 

[thorpy]

I would say it depends on the experience of your accountant and lawyer. If they are well versed, then I would say they could handle it. That said, a 2 hour meeting with a consultant may bring a different perspective in. I would suggest having a meeting with your banker as well, as their processes will change for your credit renewal.

 

[Ben Heide]

It depends if you're plan to incorporate is strictly for tax and business structure, or if you're desire is to include succession planning etc also. Best advice I can offer either way is to look at going from Sole Proprietor to Formal Partnership for 2 full years, then rolling into a Corp. Fees are more money because you're changing your structure twice, but the tax advantages and how some assets get reclassified in the roll to a Corp can be very significant.
Keep your main lender in the loop through the process.

 

[thorpy]

I agree with Ben, you should look at forming a formal partnership for 2 years before rolling into the corp. The accountant should know the details on this, and is definitely worth doing. I assume you are in Canada....

 

[SouthernSK]

If you have a accountant with experience with corporate farm tax they should be able to advise you as good as anyone for tax savings and planning. When we incorporated our accountant handled all the forums and if I recall right I don't think we used a lawyer. If there are issues you need to work through like partnerships, sucession plans, etc that is where you might want the help of other consultants.

 

[drylandfarmer]

A good chartered accountant familiar with farming can handle it. No need making it more complicated than it needs to be.

 

[lion]

Thanks guys. And yes i think if i could wait 2 years from what i see a partnership would pay off. But when you wait to long there's no waiting 2 years!!

 

[lambear]

If your accountant has a 1 year tax savings vision, get the consultant.. And probably a new accountant.

Also I'm currently going through the partership / succession plan .. With my old man and mom/wife.

Also my dad was in a major tax bind and the time so a corp was set up on day one with new accountant, then partnership so the tax swinging happened right away, then the benefit of accruing partnership income which after 2 years with become tax exempt.


Talk to dean Klippenstine @ MNP