Farm LLCs & Partnerships

Form a Farm LLC That Holds Up

Operating agreements, multi-generational ownership, and partnership structures for farm operations — drafted by an attorney who farms.

Talk About Your LLC

No obligation. No hourly billing. A short call to talk through your structure.

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100% Confidential. Flat-fee pricing.

A Farm LLC Without a Real Operating Agreement Is Just a Filing Fee

Filing articles of organization with the Secretary of State takes ten minutes and costs a hundred dollars. That part is easy. The part that matters — the Operating Agreement — is where most farm families get it wrong.

A generic LLC template doesn’t address the questions that actually break farm families apart: What happens when one sibling wants out? How do you value the farming child’s sweat equity? If a partner dies, does the surviving spouse become your new business partner? Who decides whether to replace the combine or repair it?

We build ag business operating agreements around the real dynamics of your operation. We sit down, learn how your farm actually works, and draft documents that anticipate the disputes and transitions that are coming — because in a multi-generational farming operation, they always come.

We commonly implement the two-entity model: a Land Holding LLC (for the dirt) and an Operating LLC (for equipment, grain, and livestock). This separates the operational liability from the long-term real estate asset.

warningWhat Templates Miss

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    Buy-Sell Provisions
    How a partner exits and how the farm is valued.
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    Death & Disability
    Whether a deceased partner’s spouse inherits membership.
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    Voting Deadlocks
    How 50/50 partners resolve disagreements.
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    Sweat Equity
    How the farming child earns ownership credit over time.
Kole explaining LLC entity structure on whiteboard

The Two-Entity Model: Land vs. Operations

The most effective structure for most farm families involves two separate LLCs: one that owns the land, and one that runs the operation.

The Land Holding LLC owns the real estate and leases it to the operating entity. It can be owned by all children — farming and non-farming — giving everyone an equity stake in the appreciating land asset.

The Operating LLC owns equipment, grain, and livestock. It takes on operational risk and pays rent to the Land LLC. This is owned only by the farming children who actively run the operation.

This structure ensures that a lawsuit against the farming operation can’t reach the land, and that non-farming siblings maintain value without interfering with daily decisions.

The Midwest Ag Law Process

We don’t do hourly billing, and we don’t hand you a stack of paper and wish you luck. Our process is designed to be transparent, thorough, and completely finished when we’re done.

1

Operation Discovery

We learn how your farm actually works — who does what, who owns what, who’s coming into the operation, who’s leaving. This conversation shapes every document we draft.

2

Structure Design

We design the entity structure — single LLC, two-entity model, or multi-entity system — based on your liability exposure, succession plan, and tax situation.

3

Document Drafting

We draft the articles of organization, operating agreement, buy-sell provisions, and all supporting documents. Every provision is explained in plain English.

4

Filing & Compliance

We file with the state, obtain EINs, ensure corporate farm law compliance, and set up your annual reporting obligations.

What We Build for Your Farm

Custom entity structures — never a template.

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LLC Formation & Filing

We form LLCs with the state, obtain EINs, and handle all compliance filings specific to Nebraska and Minnesota agricultural land ownership laws.

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Partnership Agreements

For multi-partner operations, we draft agreements covering profit sharing, management authority, buy-sell provisions, and deadlock resolution.

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Entity Conversions

If your current structure doesn’t fit anymore, we convert sole proprietorships to LLCs, partnerships to LLCs, or restructure existing entities.

2 Common Myths

Myth: “I set up my LLC on LegalZoom, so I’m fully protected.”

Reality: The articles of organization are just the birth certificate. The Operating Agreement is the DNA. Without provisions for buy-sell, death/disability, voting deadlocks, and sweat equity, your LLC provides liability protection but zero operational governance — which is where farm family disputes explode.

Myth: “An LLC protects me from everything.”

Reality: An LLC provides a liability shield between the entity and you personally. But if you don’t maintain the corporate veil — separate bank accounts, proper capitalization, documented transactions — a court can “pierce the veil” and hold you personally liable anyway.

What Our Clients Say
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Sandramere Seed & Supply Co. profile picture
Sandramere Seed & Supply Co.
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Kole helped us develop HR documents and create some customer forms for our business. Kole really helps put legal language in understandable form. We really appreciate his thorough nature and ability to ask the right questions to uncover issues we had not considered. His agricultural knowledge is extremely valuable. Thanks Kole! We really appreciate you!
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James Jensen profile picture
James Jensen
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Working with Kole was easy and convenient. He answered all our questions and helped us get our trust established quickly.
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Brandon Boardman profile picture
Brandon Boardman
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Kole's personal experience and understanding in agriculture makes him a great attorney for all of your farms estate planning. He's very prompt, professional and he really cares about your needs. What a great guy.
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Mary Mollenhauer profile picture
Mary Mollenhauer
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Working with this firm feels less like hiring a lawyer and more like bringing on a strategic partner for your legacy. They truly understand the complexity of multi-generational farming operations and approach every plan with both precision and long-term vision. For families managing significant agricultural assets, this is exactly the kind of counsel you want in your corner.
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Mitch Mender profile picture
Mitch Mender
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Kole is a bright and compassionate attorney. He knows what he is doing!
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Pooja Vasudev profile picture
Pooja Vasudev
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Kole Pederson walks the walk and talks the talk! As a former aerial applicator, he has fully lived the agricultural life so he is qualified to assist farmers, ranchers, and agricultural business owners with their estate planning/probate, business law, and real estate legal needs. Kole is diligent, resilient, and down to earth with a genuine commitment to help clients. In this day and age, when everything has become less tangible and very technological - Kole is the kind of attorney agricultural folks can benefit from having on their side!
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Matt Snoberger profile picture
Matt Snoberger
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Kole was easy to work with and has vast knowledge of agriculture and a lot of common sense. One of the easiest people I’ve ever worked with.
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Flynn Baker profile picture
Flynn Baker
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I have worked with Kole on a legislative and policy committee for a non profit organization. Kole's input was incredibly valuable; especially navigating legal jargon and procedures as well as his attention to detail and timeliness. I am glad to have worked with him and trust his recommendations and actions in legal matters.
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Becky profile picture
Becky
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I was doing an online search for an attorney and ran across Midwest Ag Law. I called and Mr. Pederson actually answered the phone himself, which Never happens these days! Unfortunately, he doesn't do Guardianship cases, but was very kind and went out of his way to give me some referrals!
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Curt Friesen profile picture
Curt Friesen
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Legal work made simple. Very professional firm that delivered everything I needed, when I needed it, and at a reasonable price. Great to work with and will use them again.
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Frequently Asked Questions

What type of entity is best for my farm?expand_more
It depends on your operation. LLCs offer the most flexibility for most farm families — pass-through taxation, liability protection, and customizable management. But corporations, S-corps, or partnerships may be better in specific situations.
Can I use LegalZoom to set up my farm LLC?expand_more
You can file articles of organization anywhere. But the Operating Agreement is the actual DNA of the business and a generic template will not address Nebraska’s anti-corporate farming laws, buy-sell provisions, or succession planning.
How does a farm LLC affect my taxes?expand_more
LLCs are typically pass-through entities — profits and losses flow through to your personal tax return. The LLC itself doesn’t pay income tax. We coordinate with your accountant to ensure the entity is tax-efficient.
What is sweat equity and how do we account for it?expand_more
Sweat equity is the value built by the farming child who works below-market salary while building the operation. We include provisions that track contributions and convert them to ownership interest over time. This is one of the most important provisions for farm families.

Get Your Operation Structured Right

Schedule a free consultation. We’ll learn how your farm works and recommend the legal structure that fits. Flat-fee pricing.