The way a farm or ranch business is legally structured can affect a farm transfer. So it is important to understand the different kinds of structures and what protections they may or may not provide. This is especially important if the transfer includes some or all of the farm or ranch business, along with land and other real estate assets. This information sheet briefly summarizes the four main types of business structure: Sole proprietorships, partnerships, limited liability companies, and corporations including cooperatives and nonprofits.

This resource is part of American Farmland Trust’s (AFT) Farm Transfer Toolkit and Farm Transfer Action Plan. They were developed for AFT’s Land Transfer Navigators program with support from the USDA Natural Resources Conservation Service.