Business Organizations
Overview
The practice of forming organizations for the purpose of doing business began centuries ago, but the twentieth century witnessed an explosion in both the number and types of business organizations available. From the simplest sole proprietorship to complex multinational corporations, the various business structures have evolved to meet the needs of society. The variety of business structures offers the flexibility required to fit the different needs of business in general and agricultural businesses specifically. Informal arrangements become sole proprietorships and partnerships, providing structure to business ventures as they grow. More formal arrangements are created at the state or national level, such as limited liability companies and corporations. These business organizations provide stability and protection to investors and officers while establishing guidelines within the organization and under the laws of the states in which they do business. Read the full overview.
Note: Recently added resources are posted at the top of the applicable sections.
Major Statutes
Internal Revenue Code, Income Taxes, 26 U.S.C. Subtitle A.
Internal Revenue Code, Employment Taxes, 26 U.S.C. Subtitle C.
Aid to Small Business, 15 U.S.C. ch. 14A.
Small Business Investment Program, 15 U.S.C. ch. 14B.
Labor, Title 29 of the U.S.C.
Beneficial Owner Reporting Requirements, 31 U.S.C. Section 5336.
Case Law
Case Law Index for Business Organizations
Center Research Publications
Who Owns the Business? Corporate Transparency Act and Foreign Entity Disclosure (NALC Staff, 2024)
States’ Agricultural Cooperative Formation (NALC Staff, 2022)
Navigating Your Legal Duties: A Guide for Agricultural Cooperative Directors (Scott & Traxinger, 2021)
Forms and Filing Information: Business Organizations (NALC Staff, 2019)
Considerations for Operating Agreements (Ferrell, 2011)
A Snapshot of LLCs and Farming: How Farm Businesses have implemented the Limited Liability Company Structure in the Midwestern United States (Bachelor & Hall, 2019)
State-Specific Direct Marketing Business Guides (National AgLaw Center & U. IL @Urbana)
Using Alternative Enterprises and Recreational Development to Bolster Farm Income — Workbook (R. Rumley & Tullos, 2012)
Legal and Business Guide for Specialty Crop Producers (National AgLaw Center & U. AR Division of Agriculture, 2011)
Legal Risk Management: Protecting Your Farm and Family – PowerPoint Presentation (Mirus, 2009)
The Farmer’s Legal Guide to Producer Marketing Associations (O’Brien, Hamilton, & Luedeman, 2005)
Legal and Policy Considerations of Investor-Friendly Cooperatives (O’Brien, 2005)
An Introduction to the Federal Securities Laws As They Might Apply to Agricultural Operations (Goforth, 2004)
An Overview of Organizational and Ownership Options Available to Agricultural Enterprises, Part 1 (Goforth)
An Overview of Organizational and Ownership Options Available to Agricultural Enterprises, Part 2 (Goforth)
Congressional Research Service Reports
Reports– published and made available by CRS beginning in 2017
Subjects- published by CRS and made available by NALC until 2018:
Agricultural Law Bibliography
Introduction | Keyword Search | Browse Categories
Legal publications on:
Corporate Farming (Restrictions on Corporate Farming/Family Farm Preservation)
Organizational Forms for Agriculture (Business Law and Development)
Reference Resources
Department of Labor (DOL)
Summary of the Major Laws of the Department of Labor
Economic Research Service (ERS)
Briefing Room: Farm Structure and Organization
Briefing Room: Farm Risk Management
Internal Revenue Service (IRS)
Tax Information for Businesses
National Agricultural Library (NAL)
Big River Farms – Growing Small Farms (Upper Midwest Specific)
Rural Development (USDA)
How to Start a Cooperative (2011)
Rural Business & Cooperative Service
Small Business Administration (SBA)
Financial Crimes Enforcement Network (FinCEN)
Beneficial Ownership Information
Other Federal Resources
Small Business (USA.gov)
How to Start a Nonprofit (National Council of Nonprofits)
U.S. Securities and Exchange Commission – Filings and Forms
Choosing an Organizational Structure for Your Aquaculture Business
Additional Resources
Small Business Development Center (SBDC)
Center for Agricultural Law and Taxation (IA St. U.)
Incorporation and Legal Structures (FindLaw, 2022)
What Business Model Should I Use to Grow (Boehlje & Langemeier, 2018)
Assessing and Managing Strategic Risk (Boehlie & Langemeier, 2017)
Beginning Farmer: Transfers, Agreements & Structures (Hawbaker, 2008)
Beginning Farmer: Questions to Ask About Partnership (Hawbaker, 2008)
Starting, Organizing, and Managing an LLC for a Farm Business (Moore, 2008)
Transferring Business Ownership (Hofstrand, 2007)
Business Entity Planning (Thompson & Hayenga, 2002)
Choosing the Right Business Entity (Kunkel & Wick, 2015)
Selecting a Business Structure: An Informational Guide to Forming Businesses (Williams, Barton & Coltrane, 2000)
How to Organize your Business (U. ME Extension)
Legal Forms and Traditional Structures of U.S. Business Organizations (McNamara, 2022)
Ag Decision Tools – New Business Development (IA St. Extension)
Farmdoc Agricultural Law (U. of IL Extension)
Farmdoc Agricultural Policy (U. of IL Extension)
Helping Farm Families Transition their Farm Business to the Next Generation (MI St. Extension)
Starting a Business (Entrepreneur.com)
Business Tools (SCORE:” Counselors to America’s Small Business”)
Farm Business & Transition Planning
California Office of the Small Business Advocate – Choose a Business Structure
Publications
Small Entities Must File New Beneficial Ownership Information Reports in 2024 (ISU Center for Agricultural Law and Taxation)
Using Multiple Business Entities for a Farm Operation (Moore, 2023)
Ag Law & Tax Blog (McEowen, 2023)
USDA’s Actively Engaged in Farming (AEF) Requirement (CRS, 2019)
The Small Partnership ‘Exception’ (McEowen, 2017)
Employing Children in the Family Farming Business (McEowen, 2017)
Farmer Toolkit (ASAP, 2017)
Business Structure for Small Farms: A Quick Guide (Backman, 2015)
Partnership Agreements for Farmers, Agri-businesses and Food Entrepreneurs (Rincker, 2014)
Agricultural Leasing in Maryland (Goeringer, 2013)
General Partnership Agreements for Cattle Producers (Rincker, 2010)
501(c)(3) – Do You Need It? How To Get It. How To Keep It! (Tarvin & Bridges, 2009)
Checklist for Obtaining Tax Exempt Status in Arkansas (Bridges, 2009)
Choosing a Business Structure (Sander and Lambert, 2007)
The Important Role of Non-Organization Law (Ribstein 2005)
Best Entity for Your Business (Haislet)