Contents

• Introduction
• Operational Separation
• Types of Business Organizations
  • Proprietorship
  • Partnership
  • Limited Partnership
  • Limited Liability Partnerships
    • Restriction on Liability
    • Professions Only
  • Joint Venture
  • Co-Ownership
  • Corporation
    • Federal Corporate Income Taxes Rates (%) effective January 1, 2005
    • Provincial Corporate Income Tax Rates (%) effective January 1, 2005
    • Farm Corporations Tax Considerations
  • Corporation Shares
    • Common Shares
    • Preferred Shares
  • Rights Attached to Shares:
    • Common Shares: (Growth Shares)
    • Preferred Shares: (Equity Shares)
  • Transferring assets to Corporation (Section 85 election - form T2058)
    • Inventory
    • Machinery
    • Buildings
    • Land
    • Quota
    • Liabilities
  • Corporation Fee Considerations:
  • Mixed Entities
  • Trusts
• Choosing A Form of Business Organization
• Additional Internet Links
• Critical Issues Checklist At A Glance
  • Proprietorship
  • General Partnership
  • Limited Partnership
  • Joint Venture
  • Co-ownership
  • Corporation
  • Trust
  • Choosing a Form of Business Organization
  • The Human Question - To Farm Together Forever

Appendix

• A Process for Choosing A Form of Business Organization
• Farm Incorporation Checklist
• Farm Partnerships Checklist
• Our Working Agreement
• Our Operating Agreement
• The Critical Questions - Business Arrangements

The foregoing is intended as a basic introduction to the issues facing any farmer as they begin to get involved in business. The decision as to what form of business organization to use, whether more than one form of business organization should be used, and who should be involved as owners or operators is best concluded with the input of all the affected parties and the farmer's professional advisors.