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Business Concepts

Understanding the key ideas behind our structure

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Holding Company

Corporate Structure

The parent company structure that owns and governs all subsidiary entities. Provides centralized oversight while allowing operational independence.

  • Parent organization for all subsidiaries
  • Board of Directors (2 members) provides governance
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Subsidiary Relationships

Corporate Structure

How the three subsidiaries interact with each other and the holding company. Defines governance vs. operational boundaries.

  • Three distinct subsidiaries: Rental, Farm & Events, Groundskeeping
  • Each has its own President with full operational authority
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LLC Structure

Corporate Structure

Limited Liability Company formation, operating agreements, and annual compliance requirements for each entity.

  • All entities structured as LLCs for flexibility
  • Operating agreements define governance rules
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Liability Protection

Corporate Structure

How the multi-entity structure shields each business line from cross-liability risks. Maintaining the corporate veil.

  • Separate entities = separate liability
  • Corporate veil protects personal assets
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Inter-Company Transactions

Operations

Rules for services between subsidiaries. Requires written agreements, fair market value pricing, and proper documentation.

  • Written service agreements required
  • Fair Market Value (FMV) pricing mandatory
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Conflict Resolution

Operations

6-step procedure for resolving disputes between entities or board members. Includes arbiter engagement for unresolved issues.

  • 6-step escalation procedure
  • Direct negotiation first
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Board Compensation

Operations

Profit-sharing model where board members receive distributions from remaining profits after operating expenses, rainy day fund contributions, and annual budget allocations.

  • Profits calculated after all operating expenses paid
  • Minimum rainy day fund maintained before distributions
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Parcel Mapping

Property & Assets

How to obtain and use parcel maps, GIS data, and SDAT records for property documentation and planning.

  • SDAT provides official property records
  • GIS maps show boundaries and features
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Grants & Tax Benefits

Property & Assets

Available historic tax credits, agricultural grants, conservation programs, and other financial benefits.

  • Historic Tax Credits (state and federal)
  • Maryland Agricultural grants
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Restrictions & Limitations

Property & Assets

Historic preservation requirements, AR zoning restrictions, rental regulations, and LLC compliance obligations.

  • Historic preservation review requirements
  • AR Zone event limits (50 days/year for 100+ people)

Multi-Purpose Farm Holding Company

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Last Updated: December 2025