Incorporating my business, does she get anything?

[ATENANT89]

What is the name of your state (only U.S. law)? CA

I'm incorporating a profitable business, with plans to get married next year.

The business would be an LLC, so it's its own entity and I'd be the CEO of the company I suppose.

I will plan on marrying a woman in a year but I don't quite trust her motives.

If I incorporate the business before I get married and thus make the business its own legal entity, does she get anything a theoretical divorce settlement?

I know that if the business gets sued I don't, because the business is its own entity and I'm just the employee of it. However, is this the same logic in divorce law?

 

[mistoffolees]

What is the name of your state (only U.S. law)? CA

I'm incorporating a profitable business, with plans to get married next year.

The business would be an LLC, so it's its own entity and I'd be the CEO of the company I suppose.

I will plan on marrying a woman in a year but I don't quite trust her motives.

If I incorporate the business before I get married and thus make the business its own legal entity, does she get anything a theoretical divorce settlement?

I know that if the business gets sued I don't, because the business is its own entity and I'm just the employee of it. However, is this the same logic in divorce law?

You really need to have an attorney explain some things to you.

First, for an LLC, you are typically not the CEO. Rather, you would be a member/manager. Also, you are not technically an employee of an LLC. Earning a salary from an LLC can be a problem, particularly if it's closely held.

But to answer your question, Anything you have before you are married is separate property. HOWEVER, if you put marital assets into the LLC, then the increase in value of the LLC may become marital. For example, your salary is typically marital income. If you reinvest some or all of your 'salary' (again, it's not a salary in an LLC, but...) into the LLC, that may be sufficient to entitle her to some of the gains.

But why are you marrying someone that you don't trust and are unable to discuss financial matters with?

 

[ATENANT89]

You really need to have an attorney explain some things to you.

First, for an LLC, you are typically not the CEO. Rather, you would be a member/manager. Also, you are not technically an employee of an LLC. Earning a salary from an LLC can be a problem, particularly if it's closely held.

But to answer your question, Anything you have before you are married is separate property. HOWEVER, if you put marital assets into the LLC, then the increase in value of the LLC may become marital. For example, your salary is typically marital income. If you reinvest some or all of your 'salary' (again, it's not a salary in an LLC, but...) into the LLC, that may be sufficient to entitle her to some of the gains.

But why are you marrying someone that you don't trust and are unable to discuss financial matters with?

Interesting, yes I need to speak to a financial expert. I don't keep the money I earn from an LLC?

And the reason I am concerned was because she pretty much broke up with me about a year ago even though I was madly in love with her. Now that she got word that I have a successful business up and running she suddenly reappeared into my life. Seems highly suspicious but I know I'll never find a woman besides her that will love me.

 

[mistoffolees]

Interesting, yes I need to speak to a financial expert. I don't keep the money I earn from an LLC?

And the reason I am concerned was because she pretty much broke up with me about a year ago even though I was madly in love with her. Now that she got word that I have a successful business up and running she suddenly reappeared into my life. Seems highly suspicious but I know I'll never find a woman besides her that will love me.

"California is a community property state. California defines community property as all that property, both real and personal, which a married person living in the state acquires during the marriage. This includes property that is located outside the state as well as within the state. With the exception of separate property, no matter how property is titled, and, in the case of income, no matter who earned it, if it is acquired during the marriage it is considered part of the marital community estate"


This is not legal advice, I would suggest some serious pre-marriage counseling at least for you. "I'm desperate and this is the only person who is crazy enough to marry me" doesn't sound like much to build a marriage on. Not to mention that if she really did run because you were broke and now wants to come back because you're successful, that's a strange description of "a woman .... that will love me."

 

[Tayla]

Did you ask your parents who are guarantors for your apartment?

It appears that you are not as financially secure as you make out to be on this particular post.

Technically I would suggest a pre-nuptial agreement, but then again that is meant for someone who is filled with assets and wants to secure years of previous investments and commodities.

 

[LdiJ]

You really need to have an attorney explain some things to you.

First, for an LLC, you are typically not the CEO. Rather, you would be a member/manager. Also, you are not technically an employee of an LLC. Earning a salary from an LLC can be a problem, particularly if it's closely held.

But to answer your question, Anything you have before you are married is separate property. HOWEVER, if you put marital assets into the LLC, then the increase in value of the LLC may become marital. For example, your salary is typically marital income. If you reinvest some or all of your 'salary' (again, it's not a salary in an LLC, but...) into the LLC, that may be sufficient to entitle her to some of the gains.

But why are you marrying someone that you don't trust and are unable to discuss financial matters with?

I have to disagree with this just a little.

I agree that an owner of an LLC is a member or managing member rather than a stockholder. I disagree that there is any problem in a member receiving a salary from an LLC in the general course of things. Its actually recommended that working members receive salaries, particularly if the LLC elects to be taxed as an S-corp.

However, what is problematic here is that it appears that he will be a single member LLC. A Single member LLC is a disregarded entity for tax purposes therefore he will still be filing a Schedule C and all of its income will be marital income.

An LLC is not a corporation. Therefore someone who forms an LLC is not incorporating at all. He might find that forming an S-corp, rather than an LLC at all, more suits his purposes.

 

[mistoffolees]

I have to disagree with this just a little.

I agree that an owner of an LLC is a member or managing member rather than a stockholder. I disagree that there is any problem in a member receiving a salary from an LLC in the general course of things. Its actually recommended that working members receive salaries, particularly if the LLC elects to be taxed as an S-corp.

Depends on the circumstances. There are times when a salary is inappropriate. For a single member LLC, there's little benefit to calling it salary, anyway.

 

[LdiJ]

Depends on the circumstances. There are times when a salary is inappropriate. For a single member LLC, there's little benefit to calling it salary, anyway.

For an LLC electing to be treated as an S-corp a salary is not only appropriate, but its preferred. That ensures that proper social security and medicare taxes are being paid, and keeps the IRS off of the S-corp's back.

For an LLC electing to be treated as a partnership, a salary is also appropriate, although not absolutely necessary, as the income passes through as taxable for social security and medicare purposes.

Naturally it would not be appropriate to pay a salary to a non-working member of the LLC.

 

[Bali Hai]

"California is a community property state. California defines community property as all that property, both real and personal, which a married person living in the state acquires during the marriage. This includes property that is located outside the state as well as within the state. With the exception of separate property, no matter how property is titled, and, in the case of income, no matter who earned it, if it is acquired during the marriage it is considered part of the marital community estate"


This is not legal advice, I would suggest some serious pre-marriage counseling at least for you. "I'm desperate and this is the only person who is crazy enough to marry me" doesn't sound like much to build a marriage on. Not to mention that if she really did run because you were broke and now wants to come back because you're successful, that's a strange description of "a woman .... that will love me."

Because this gold digger left when OP was broke and returned for the green backs is not strange at all. It's normal.

Op needs to read this forum for a year and then decide if he is going to screw up his life or not.

If OP is hell bent to marry ANY woman, not to mention this particular gold digger, we can't save him from himself.

Let him find out just how fast his love (lust??) for his sweetie turns to hate when she divorces his ass and takes him to the cleaners with the judges help.

 

[HappyWanderer]

I will plan on marrying a woman in a year but I don't quite trust her motives.

Don't get married until you do. Nothing will work out for you until then. Nothing.

Looking at the law to protect you is guaranteed to leave you in a very bad place.

 

[ATENANT89]

I really appreciate the personal advice but based on who I am I know I will not find anyone else.

 

[candg918]

OP, You are a successful businessman. You must be intelligent, hard working and ambitious.You sound like a good catch to me. You need some counseling to understand why you have such a poor opinion of yourself before you go any further in this relationship. It is far worse to be married to the wrong person than to be single. You deserve better than someone who appears by your own description to be a gold digger.