Does an LLC Lower Your Farm Taxes?

What an LLC actually changes — and what it doesn't
Course #: FN-028
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Field Note Description

Heard that forming an LLC will lower your farm taxes? For a single-owner farm, it usually won’t. The IRS treats a one-member LLC just like a sole proprietorship, so your farm return and your self-employment tax don’t change. This Field Note explains what an LLC really does — protect your personal assets — what it doesn’t do, and exactly what to ask your preparer if tax savings is what you’re after.