Introduction
There are approximately 2.3
million farms in the United States,
ranging in size from small parttime
farms to very large operations.
Regardless of size, all farms
are a form of business and can be
organized or structured in several
ways. Individuals involved in the
business of fish farming need to be
aware of the various organizational
stuctures available to them,
including sole proprietorship,
partnerships (general and limited)
and corporations (regular and
subchapter-S). .
The specific circumstances of the
fish farm business dictate which of
these structures is most suitable.
For example, large farms with
numerous employees and a large
investment . requirement may find
it advantageous to consider a more
formalized structure, such as a
corporation. However, most farms -
are not in this category. In fact,
70% of the farms in the United
States fall at the lower end of the
income scale. This group is highly
dependent on non-farm income.
Overall net off-farm income has ?
increased from 10% in 1960 to 42%
in 1986. Nevertheless, these small
farms or operations may still
benefit from particular organizational
structures.
This paper reviews the various
forms of organizational structures
which can be utilized in fish
farming businesses and presents
the advantages and disadvantages
of each structure as they relate to
such businesses.
Organizational Structures
Sole Proprietorship
Most farms in the United States are
organized as sole proprietorships.
Under this structure the farmer is
the sole owner, has legal title to the
property, and is self employed.
Management decisions are solely
under the control of the farmer.< ...