If you’re a farmer or rancher running your own business, you’ve probably come across terms like “business name” and “legal business name.” While they might sound similar, they serve different purposes, especially when it comes to payroll and tax filings. Knowing the difference between these two can save you from confusion and help you stay compliant with tax laws.
1. Business Name
Your business name is the name the public knows you by. It’s what you’ll use in your day-to-day operations, on your website, and in your communications. This is the friendly name that your customers, employees, and community see.
For example, you might go by something like “Stewart Family Farms” on your farm signs, in your emails, and on your social media. This name represents your farm to the world. When you send payroll emails to your employees through FarmRaise, they’ll see your business name—the one they’re familiar with.
2. Legal Business Name
On the other hand, your legal business name is the official name registered with the IRS and the government. This is the name linked to your Federal Employer Identification Number (EIN), which is crucial for tax purposes, financial reporting, and legal matters. Your legal business name might include identifiers like “LLC,” “Inc.,” or “Ltd.” that specify your business structure.
For instance, while the community might know you as “Stewart Family Farms,” your legal business name could be something like “Stewart Family Farms 3, LLC.” When it’s time to file taxes, or when the IRS needs to send you official paperwork, they’ll use this legal business name.
Why Does This Matter for Payroll?
Business Name: This is what your employees and vendors will see on emails, pay stubs, and any general communication. It’s familiar and easily recognizable.
Legal Business Name: This is what FarmRaise will use when filing your payroll taxes with the IRS, state, and local tax authorities. It ensures your tax records match up with what’s on file with the government.
Example:
Let’s say your farm is known locally as “Stewart Family Farms,” and you’ve registered it with the IRS as “Stewart Family Farms 3, LLC”:
When your employees get paid, they’ll see “Stewart Family Farms” on their emails and paystubs.
But when it’s time to handle taxes, the IRS knows you as “Stewart Family Farms 3, LLC,” and that’s the name FarmRaise uses for official filings.
What You Need to Do
Make sure that both your business name and your legal business name are entered correctly in FarmRaise Payroll. This ensures smooth payroll processing and compliance with tax laws.
If you’re ever unsure, just remember:
Business Name: Friendly and public-facing.
Legal Business Name: Official and used for taxes.
We know as farmers and ranchers you have enough to juggle, so let us help you keep your payroll stress-free! If you need any further assistance, feel free to reach out to the FarmRaise support team. We're here to help you stay on top of your payroll and ensure that everything runs smoothly from farm to finances.