I would like to create an LLC in my 16 year old sons name, however I would run the business, can this be structured. My goal to have no other source of income connected to me in anyway.
I have heard of structures where the business is in one name, but its being runned and operated by someone else.
Hi,
Very first question I have is does your son intend to go to college and will he need potential student loans or grants?
If you place a LLC regardless of legality in your son’s name and at 18.5 years old he has to fill out financial applications for college this would have a financial implication on eligibility.
Now at 16 years old your son can not sign a legal document on his own behalf! Until he is 18 years old you are the legal signatory on his behalf, but this does not appear to be about your son; this appears to be about you hiding income or hiding assets?
I have children and I would not put their future at risk by using them or their identity (Including SS number) to hide or conceal my assets as I do not want to screw up their future. When they are of legal age and capable of making their own decisions if they want to create a business with dad then we can legally create it then.
My advice for you is wait until your son is 18 and then decide whether it is in his best interests to start a business with you!
There are way’s for you to do things right now on your own! Create a spend thrift trust in Nevada through an attorney, because of Nevada laws and attorney client privilege it is impossible to find the owner of a blind trust and a trust can then own an LLC, just make sure the attorney and trust trustee’s are the signatories of the LLC and all you do goes through with just the attorney or trustee’s as signatories. A spend thrift trust usually has 3 trustee’s and one could be you.
Beware of claw back periods as you can not transfer assets to a trust and then expect those transfers to be concealed as the transfer of anything may create a paper trail, the claw back period in Nevada is 2 years.
GR
Gold River is giving good info.
You should also be aware that if anythng goes wrong and you go to deposition the very first question a good lawyer will ask is “Do you have any assets in any form of trust, partnerships, other names, etc., or LLC’s.”
You must answer honestly or face other problems and they can immediately find your assets.
The other thing to consider is that there is a growing number of cases where the courts are piercing the corporate veil of SINGLE Entity LLC’S.
The logic being…that you commited the wrongdoing and there is no one else to protect so they proceed to pierce the corporate veil.
Single entitly means that immediate family, ie., you and your wife or you and your son.
Put someone else like your attorney in if for a very minor position.