How to make an official ranch name?

[Silent Steve]

I was wondering how do make your ranch name 'official'?


Thanks
Steve

 

[vet tech]

Yes is there something that you have to do to be a cattle "company" or cab you just call yourself that? Hope thats not a stupid question. But I've been wondering about that

 

[OqRanch]

I may be wrong on this.  I think you have to fill out some sort of paper work with your County or State.  That would keep anyone from using your name.  Kinda like incorporating a business.

 

[shortdawg]

My Accountant filed mine for me. You can just call your ranch a name but others can use it too if you don't have it registered.

 

[Reinken Cattle Co.]

We call ours a company on our own with out it being "registered" I do understand someone else can use it but why would they?! so we put it on our signs and hats and other things..

 

[CPL]

Aren't there certain tax benefits that go along with being official?

I know our own family has a family business and the tax deductions are great. Anything used to enhance, promote, and grow our business is a tax write off. I don't know if that would transfer into the livestock industry, though.

 

[blackcows]

Aren't there certain tax benefits that go along with being official?

I know our own family has a family business and the tax deductions are great. Anything used to enhance, promote, and grow our business is a tax write off. I don't know if that would transfer into the livestock industry, though.

It would depend what your definition of "official" is.  If you are filling out a Shedule F (Farm Income) on your income tax the deductions are available, in order to be a business you just have to say you are a business.  If your business has a loss (paper loss) year after year then the IRS may challenge you as to whether or not you truely have a business and not a hobby.

If you consider "official" as an LLC or Corporation that would require a lawyer and probably somewhere between $500 to $1000 and would have benifits when it comes to liability and possibly taxes but the additional cost to have an CPA do the corporate part of the taxes may offset this. 

Mike

 

[Coop]

Blackcows is right on as far as tax purposes. However if you are wanting to protect a name you probably need to protect it through the patent and trademark office. You can trademark a name and no one in this kind of business will be allowed to use it. It geneerally requires the services of a patent attorney. I think most people just use a name to identify their farm or ranch for promotional purposes.

Coop

 

[justintime]

If you are thinking of calling yourself a "cattle company" as in Corporation, or limited company, make sure you talk this out  with your accountants and a good lawyer as well. It can get very complicated and once you set up a limited company, it is considered a completely separate entity by the tax people. You have to be careful as to what you put into the company as well as what you take out. It can have great benefits, but it can also have some detriments as well.  Setting up an LLC or corporation also means two sets of income tax every year. There are different rules for personal and corporate income tax and I would suggest you need a good tax accountant to manage this.

I know your tax laws in the US are different than ours here in Canada, but from what I understand, the basic general way they are looked at  by the tax man in each country is similar. Make sure you have a good understanding of the tax laws, and make sure you understand if the corporate route offers enough long term benefits. Continue to have your accountant advise you on tax changes, as there are hundred every year, some that will affect your operation, and some that won't.

We established a limited company in 1978, when we started feeding cattle. In our case, we were advised to have the company own the cattle, and to keep our land owned personally. This has worked pretty well, other than having to complete two sets of books every year as well as two separate sets of income tax.It cost me about $1800 to set up the company in 1978. A few years ago, I decided that since we were no longer feeding cattle, and since I was really tired of two sets of books and income tax, that I should look into winding down the corporation and just own everything personally. I found out it is easier said than down. It was possible,  however, it would have meant many thousands of dollars being paid to government, and lots of legal and accounting bills. For the time being, I am kinda stuck with having a corporation, but there are still benefits. For this reason,I would suggest that you have a long term view of your operation, do some long term planning, get good advice, and give this decision lots of thought. As I found out, sometimes these things are pretty easy to get into, but rather hard to get out of.

Another thing to think about. Divorce is never an easy thing to work through on any level. A neighbour decided to set up his farm into a limited company a few years ago. While it was a very successful farming operation, a divorce occurred, and when the dust settled, absolutely all assets had been sold. The biggest beneficaries were the lawyers and the government. Neither husband nor wife ended up with much. A really sad deal on all levels.

 

[Silent Steve]

Thank you everyone for your replies

Steven

 

[aj]

I know of two "stepping stone cattle" outfits. I think that the "Trademark" ranch is the cleverest name for a ranch I have seen. Great for marketing.