Kingdom of Callaway - Fulton, Mo 65251 | mtbrights - 1/18/2021 07:03 C Corps were pushed hard in the 80's, but are now being seen as a monster in terms of estate planning and exit strategies. I wouldn't do one on a bet. I don't know S corps as well but they sound like a better solution.
We were set up as a family owned S corp back in the 1960's.
The bad part is if we wanted to sell farm land, it would be bad tax wise. The good part is if we wanted to sell farm land, it would be bad tax wise.
There are worse things than it being hard to sell the land. When stock ownership is sold from one generation to the next, it forces everyone involved to take a step back and support the continued operation of the farm and not look for a fast payout.
The way it was explained to my by a great uncle was that S corps were invented just a few years before they converted over to it in 1963. He said before the S corp that the top tax rate for individuals was something like 90 percent, and a C corp caused you to be taxed at a corporate rate, and then the individual also had to pay taxes on the same money, so double taxation. The S corp solved that for us, with the added benefit of as I stated above, its hard to sell the farm!
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Land trust
