by kpeavey » Mon 17 Nov 2008, 10:43:46
A section of my farm plan uses 4 companies. Company A grows the stuff. Company B does the marketing. Company C simply handles the money . Company D is a management firm.
Company A is invisible. Any names, addresses and references on packaging, vehicles, receipts will refer to company B. It owns no land and very little in terms of value. Land is leased from the owner. It does have a mailing address.
Company B handles the product. It may own property but will likely lease a storefront. It owns equipment, processing tools, and lots of shelving. It is the public aspect of the operation.
Company C is invisible. It holds all the money and serves as the accounting arm of all companies for liability purposes. They write the checks as a service for the other companies, naturally, there is a fee for this service.
Company D is invisible. It leases employees.
It's extra paperwork to be sure, but it hides the location of the farm from public view and hides the money from attorneys and taxing authorities. Who do you sue? The money is in the accounting which has no liability for a product sold or grown by a client. The company with the most liability, the grower, has shallow pockets. The employees and management also have shallow pockets. The landlord has real estate but is not involved with how the land is used and not affiliated with the companies involved, minimal to no liability.
None of this prevents people from walking through the woods to find a field of beans and chickens, but at least its not a road map.
If you want a picture of the future, imagine a boot stamping on a human face--for ever."
-George Orwell, 1984
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twenty centuries of stony sleep were vexed to nightmare by a rocking cradle, and what rough beast, its hour come round at last, slouches towards Bethlehem to be born?
-George Yeats