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Updated over 9 years ago,
Combine new REI business with existing business?
We own and operate a choose & cut Christmas tree farm. It's set up as a sole proprietorship (no LLC). We set up a separate business for REI as an LLC, but I wonder if it would be better to roll the 2 businesses into one to facilitate obtaining credit for REI. The tree farm has been in business more than 10 years and shows a modest profit (a VERY modest profit).
But, it's a very different kind of business for tax purposes. For the farm, we use a Schedule F, which is for reporting farm income and expenses. For REI, we are starting out with a vacation rental, a tiny house which will be located on the farm property, but we hope to also move into buy & hold.
I am also concerned with asset protection for our land if someone were hurt here. The combination of hayrides, camp fires, and kids makes this a definite possibility. Should we get the farm and REI business into an entity which would lease the land from us to provide some degree of separation?
What kind of professional could advise us on this? An accountant, attorney, other? If an attorney, what specialty?