What is the name of your state (only U.S. law)?
North Carolina
My fiance is starting a concrete business and we're trying to decide on the best structure for his company. He originally wanted a Sole Proprietorship, but when he filed some forms at Cumberland County, NC, they mistakenly filled it out for him as a LLC.
He's now thinking he will get great tax breaks as an LLC (is this true?) and since you need at least two people to form a LLC, he asked his friend for his SSN so that he could turn in the forms using his and his friend's SSN.
I am afraid by listing his friend as the other person in the LLC, this gives the friend automatic rights to the company (as a partner)... is this true, also? There is no legal partnership agreement between them... is adding his friend as the other party in the LLC giving this person rights to the company, whether he contributes to it or not?
I am trying to avert a disaster down the road by approaching this in the right way up front. Thanks for any suggestions...What is the name of your state (only U.S. law)?
North Carolina
My fiance is starting a concrete business and we're trying to decide on the best structure for his company. He originally wanted a Sole Proprietorship, but when he filed some forms at Cumberland County, NC, they mistakenly filled it out for him as a LLC.
He's now thinking he will get great tax breaks as an LLC (is this true?) and since you need at least two people to form a LLC, he asked his friend for his SSN so that he could turn in the forms using his and his friend's SSN.
I am afraid by listing his friend as the other person in the LLC, this gives the friend automatic rights to the company (as a partner)... is this true, also? There is no legal partnership agreement between them... is adding his friend as the other party in the LLC giving this person rights to the company, whether he contributes to it or not?
I am trying to avert a disaster down the road by approaching this in the right way up front. Thanks for any suggestions...What is the name of your state (only U.S. law)?