If my stepson wants to make his mother the owner of his new roofing business as LLC, what risks would be involved for my wife and I if we do this?
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If my stepson wants to make his mother the owner of his new roofing business as LLC, what risks would be involved for my wife and I if we do this?
My stepson wants to make his mother the owner of his new roofing business as LLC because he says the insurance is cheaper for female owners in Pennsylvania. What risks would be involved for my wife and I if we do this? Taxes, 401k, assets, etc.?
Asked on July 24, 2012 under Business Law, Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
In order for the mother of the stepson to be the legal owner of the roofing business operated under a limited liability company, she will have to own the majority of the issued membership shares of the entity. However, she could sign a proxy transferring her voting rights to some person who is actually in charge of running the business for a very long period of time.
Such suggestion would reduce certain risks of in fighting that could happen. I suggest that you and other family members consult with a business attorney to sort out the feasibility of the above suggestion and other attendant risks particular to the roofing business as a matter of day to day operations including having a valid contractor's license in place.
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