B4—Lancaster Farming, Saturday, May 31,1980 Will a partnership (Continued from Page B 2) recommended, studying its size, labor availability, profitability, financial status, and growth potential. Lastly, and most im portant, Cooper added that before a decision is made to form a partnership, the family or potential partners need to step back and decide whether they have the ability to work together and share responsibility. Once a partnership is legally formed, all of the partners share in the profits and losses, he said. They also share in the ownership and control of the property, and the farm’s management. “Start slowly,” Cooper advised. “Don’t get too many assets involved at first.” One of the areas where a partnership is a factor is when dealing with creditors. Cooper pointed out that where a partnership exists, creditors for the partnership look at the partnership first for repayment; for an in dividual’s creditor, repayment is sought from the individual. Then the creditors can go to either the individual partners or the partnership, but only up to the amount the individual holds in interest in the partnership, he ex plained. The partnership can pay off the individual part ner’s creditors m lieu of the partnership dissolving as a result of selling out of a partner. A limited partnership. Cooper said, is a special type. In this partnership, the partners are liable for debts and obligations only to the amount of their individual investment in the business. Our liquid starter can help you save your most precious commodity. Nothing’s more precious at planting time than time. This has been a major reason why so many farmers have switched to liquid starter One man can load liquid starter two thirds faster than two men can load dry bulk starter. With liquid, he can load three-and-a half times faster than one man loading dry bagged fertilizer. Besides speed and ease of handling, ARCADIAN® liquid offers other advantages at planting time. Pesticides can usually be added to ARCADIAN liquid for a free piggyback application. And because our liquid fertilizers made with ARCADIAN rich in polyphosphates, they supply more available nutrients. So your crop gets a head start and you get reduced weed problems, earlier harvests, lower drying costs and greater efficiency from your fertilizer dollars. So if you want a better starting starter, stop in and see us today. <j|«ica. Plant Foods ' (f^f> * -|l , MARTIN’S AG ZIMMERMANS LIQ. SERVICE SERVICE c/oJohnZ Martin RDII, Box 716, New Holland, Pa. 17557 A partnership not only requires more of an effort for individual to cooperate and hold up their end of the agreement, it also requires more and better records. The realm of accounting becomes more complex and requires a more in depth understanding. Cooper noted that any capital contribution to a partnership is not a taxable event He also pointed out the recognition of gain or loss is postponed until the contributed property is sold —either the equipment or the partner’s interest. The profits of a part nership can be handled a number of ways, according to Cooper. They can be split down the middle, they can be divided by percent of the assets each partner con tributed, or they could be doled out basd on the labor or amount of management required. But, what if a partnership doesn’t work out? There are several ways to dissolve the business Taking the big step into a organization, Cooper noted, partnership requires a lot of The partnership can be thought, study, and perhaps declared bankrupt, the legal and financial counsel, partners can agree to But, both Dennison and dissolve, or a partner can be Cooper agree that it is one bought out. method of moving the assets Cooper, like Dennison, of a farm business into the strongly emphasized the hands of the next generation, need for a buy-sell clause in rather than leaving them to the original agreement. This build up in the parents’ would require a surviving estates, partner to buy the partner’s Next week’s final article in interest m the event of death, the estate planning senes or at the partner’s request if will deal with another tool— they want out the corporation. oil c /* •» The clause provides a ready sale for the remaining interest, and prevents the surviving partner from having to farm with the widow or widower of the decedent, Dennison said. He recommended a pricing structure for the assets of the partnership be part of the original agreement, thus avoiding any hassles over appraisals. Then, every year, the amount the survivor should pay for the assets should be renewed to keep current with the economy, he said. Dennison also recom mended that partial or full funding of the buy-sell amount be covered through life insurance, depending on the insurability of the in dividual partners involved and the cost of the insurance. “If not fully funded, I recommend a long term buy out agreement of 5,10, or 15 years, depending on the wishes of the family,” he said. ron THE KALAMCSO MKT Rehrersburg, Pa. Ph: 717-933-4360 Jefferson Community 41-H Club to hold picnic SPRING GROVE The The program for the Jefferson Community 4-H evening was a film about fly Club held its monthly fishing shown by the con meeting at the Jefferson servation leader, and Fireball. Roll call was taken demonstrations by Doug with members stating what Marguish, Cathy Shive, John they planned on doing over Wherely, and Frank their summer vacation. It Lecrone. There was also a was voted that the club pay speech by Bill Wise. for half of the cost for the members who are attending The next meeting will be 4-H Camp this summer from th* club s picmc and a the June 10-13. There will conservation walk at Project also be an Indiana County ‘7O, Tuesday, Jmie 17, at 6:30 Exchange this weekend. P- m - Reported by Bill Wise. Roughage deserves your special attention. That’s why we recommend For Your Haylage and Mow Hay! ★ Recent years have seen the development of products to increase the value of roughage... ★ OVER 10 YEARS AGO, we experimented by sprinkling ALFA-ZYME over the hay as it was placed in the mow. By putting the hay into a sweat, ALFA ZYME GREATLY INCREASED THE PALATABILITY OF THAT HAY! ★ Tests continued to cover all types of weather - wet, normal and dry years - with excellent test results. 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