Farm tax id?

Question

I just bought 17 acres with a mobile home. I got a horse and I am going to get a couple cows. Should I get a tax id? In the future I am wanting to ranch and I am thinking having a tax id will help with the farm loan process(as they require experience-books wise) Do you think I should get one-what are the pros and cons and where do I begin? State Oklahoma

Answer 1

The issue is not just getting a federal tax id number, it is whether or not you should incorporate or form an LLC for liability protection purposes. If you are just a "gentleman farmer" probably don't need to incorporate. Just make sure you have adequate insurance coverage, both property and liability. Shouldn't be too expensive