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Setting up or expanding a farm: which status to adopt?

When a farmer launches or develops a business, the choice of legal status is a key decision. It influences day-to-day management, future prospects and the transfer of family assets. Here's an overview of the main farm structures and their advantages.

EARL: protect your assets with limited liability

The EARL (Exploitation Agricole à Responsabilité Limitée) is ideal for farmers wishing to secure their personal assets. In the event of financial difficulties, only the contributions made to the company are committed.
This structure also offers great flexibility. It can be set up by a single farmer or with partners. What's more, it can be used to develop ancillary activities such as rural tourism, direct sales or innovative agriculture, without disrupting the legal framework. A reassuring, scalable option for those who want to undertake business with peace of mind.



GAEC: the efficiency of group work

The Groupement Agricole d'Exploitation en Commun (GAEC) is perfect for farmers who are committed to cooperation. This structure encourages the pooling of resources (equipment, buildings, manpower), while ensuring that associates retain their status as individual farmers.
The main advantage? Equitable sharing of expenses and profits, thus strengthening the long-term viability of the farm. What's more, the GAEC gives access to specific financial aid, a significant advantage for boosting the business.

SCEA: flexibility and openness

The Société Civile d'Exploitation Agricole (SCEA) (non-trading farming partnership) is a highly attractive option. Unlike other structures, it gives associates great flexibility in organizing management and distributing roles.
Another advantage is that there is no limit on the number of partners. This openness means that a farm can expand freely, and even bring in outside investors, even from outside the farming community. The SCEA is thus an interesting solution for diversifying activities, for example into rural tourism or the processing of agricultural products.

Get help from your notary

Choosing the right structure for your farm is a decision that has an impact on taxation, management and inheritance. Each status has its own specificities and deserves careful consideration. Tailor-made advice from your notary will help you choose the solution best suited to your objectives.