27 Jun Should spouse be owner of LLC?
Question: Business Law: Sole Proprietorship. My husband started his own construction/handyman business 3 years ago. It’s an LLC and only his name is listed. He originally did not add my name to the business because he just didn’t think to do it. Should he add my name to the business? Why or why not?Thank you for your assistance.
Reply: answer is ABSOLUTELY CLEAR. You do NOT want to be a member. The idea of the LLC is to insulate the family assets from business liabilities. Even if a creditor or the government can successfully attack your husband, your assets would be protected. As a member of the LLC you would have potential liability for Sales and Use Tax, State and Federal Employment Taxes and NJ Disability and Unemployment contributions.
If you would like further information on the tax and legal issue, there is free information on my website https://www.taxesq.com
I hope this helps!