[Market-farming] More business

Pat Meadows pat at meadows.pair.com
Sun Feb 6 08:09:39 EST 2005


On Sun, 6 Feb 2005 06:38:04 -0600, you wrote:

>I'm VERY pleased to hear a small farming success story!
>
>On Sat, Feb 05, 2005 at 07:29:44PM -0800, Steven Rogers wrote:
>> I paid my attorney and CPA to do the incorporation. The lease agreement between myself and the corporation was drawn up by my attorney.
>
>There is clearly some size/profitability threshold that must be crossed 
>before such effort and expense is justified; I wonder what it is?  I 
>wonder what the initial and ongoing costs are for incorporation? 

We formed our corporation (an S-corp) in 2001, in
Pennsylvania (not for market farming, but this wouldn't
differ for farming).  

The cost was $600 (lawyer's fee) plus some small amount (I
don't remember exactly but, IIRC, under $100) for fees to
the state to incorporate.

This, like almost everything else in the USA, will vary by
state.

Ongoing costs (again in Pennsylvania):  Pennsylvania has no
corporate tax that is incurred just because a corporation
exists, so that's OK.  I believe some states have one,
though.

I do the bookkeeping, so there's no extra 'money cost'
incurred there and - with Turbo Tax and Quicken or
QuickBooks - the bookkeeping that I do is really not more
than I would need to do for a sole proprietorship.  

We do need to buy TurboTax for business each year (as well
as the personal one) to get a version that does corporate
taxes:  so that's about $100/year extra.  

It's well worth the cost, IMHO, for almost anyone in a
business of any kind.  There is a frequently-used
alternative now, namely an 'LLC' - limited liability company
- and that might be better for some situations and/or some
states.

There's a lot of information on this topic on Nolo Press's
website:

http://www.nolopress.com

Pat


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