Date of this Version



North Central Regional Extension Publications are subject to peer review and prepared as a part of the Cooperative Extension activities of the thirteen land-grant universities in twelve north central states, in cooperation with the Cooperative State Research, Education, and Extension Service (CREES), U.S. Department of Agriculture, Washington, D.C.


A corporation is an artificial person that is created and operated according to state corporation statutes. It is a separate taxpayer subject to specific and detailed federal, state, and local tax laws. The advice and service of your lawyer are indispensable in organizing and operating a farm corporation.

There are three basic forms of farm business organization, the sole proprietorship, the partnership, and the corporation. Variations of these forms have resulted in the limited partnership and the "tax option" corporation. These three basic forms are discussed in this research publication.