Location: Eastern Pennsylvania
I own farm equipment including a large tractor, mower attachments, forklift, etc. I want to start offering pasture mowing/field mowing for extra income to local properties.
Aside from insurance, I figured an LLC is my best protection. However, I realize that if I am to use my own tractor in the LLC, then use that tractor outside the LLC, I basically void the whole purpose of the LLC.
So how do I do this? I know a lot of sites say “Sell it to the LLC” but that seems like a pain in the ass especially because I will still use it for personal use.
Comments
Selling to the LLC isn’t a great idea, that creates a ton of extra work (contributing cash to the LLC, drawing up sale agreements, paying yourself from the LLC, tarnsferring title) and has the potential to create tax issues with basis. If you want the assets owned by the entity, just contributing the asset cuts out pretty much all of that except transferring the title.
You could work out some form of lease, either the LLC leasing from you or you leasing from the LLC, depending on where you want the title to sit. If the LLC owns the equipment, you could treat personal use as owner draws.