Running and managing a home care business for the mentally ill

[CIA]

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


Hi guys;

Am new here and have a couple of questions regarding running/managing a home care business for the mentally ill

Currently, my Mother in law in San Diego manages and runs a home care business for the mentally ill, she has been forced to hand over the business to her son (my husband) for him to run and manage. She suffered a minor heart attack and her doctor advised her to stop running the business, she knows she needs to do this in order for her to be able to claim disability.

What would be the process for her to hand over the business legally to my husband?
Will my husband need to get a license to manage the business - she already has one in her name, I know nothing about business; so I am not sure if the business license can be handed over to him....
Regarding the checks from the organizer/sponsor for the mentally ill person, my fear is that legally on paper my husband will be the business owner/manager but his mom will still be able to collect the checks for the patients....is this even POSSIBLE?

I have so many questions and concerns about him taking over...

My husband is willing to take over the business, but I made it very clear to him, that he needs to be certain that the checks will be under his name, not just the business name.

 

[Zigner]

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


Hi guys;

Am new here and have a couple of questions regarding running/managing a home care business for the mentally ill

Currently, my Mother in law in San Diego manages and runs a home care business for the mentally ill, she has been forced to hand over the business to her son (my husband) for him to run and manage. She suffered a minor heart attack and her doctor advised her to stop running the business, she knows she needs to do this in order for her to be able to claim disability.

What would be the process for her to hand over the business legally to my husband?
Will my husband need to get a license to manage the business - she already has one in her name, I know nothing about business; so I am not sure if the business license can be handed over to him....
Regarding the checks from the organizer/sponsor for the mentally ill person, my fear is that legally on paper my husband will be the business owner/manager but his mom will still be able to collect the checks for the patients....is this even POSSIBLE?

I have so many questions and concerns about him taking over...

My husband is willing to take over the business, but I made it very clear to him, that he needs to be certain that the checks will be under his name, not just the business name.

This situation is really too complex for an internet forum. You (plural) should consult with some local advisors on this.

 

[justalayman]

This situation is really too complex for an internet forum. You (plural) should consult with some local advisors on this.

among the advisers, you should include an attorney and a tax professional. There are considerable legal issues involved and how the business is "handed over" to your husband could make huge differences in tax issues for both parties.

Regarding the checks from the organizer/sponsor for the mentally ill person, my fear is that legally on paper my husband will be the business owner/manager but his mom will still be able to collect the checks for the patients....is this even POSSIBLE?

sure it's possible but if that is a real concern, I'm not sure I would want to even consider taking over the business. Is mom that devious that she would stick her son with the business but make him fight, and possibly sue, to receive the payments for the residents?

You really need an attorney intimately involved in this given that question.

 

[Zigner]

among the advisers, you should include an attorney and a tax professional. There are considerable legal issues involved and how the business is "handed over" to your husband could make huge differences in tax issues for both parties.

I agree. I should have been a bit more thorough in my response.

 

[LdiJ]

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


Hi guys;

Am new here and have a couple of questions regarding running/managing a home care business for the mentally ill

Currently, my Mother in law in San Diego manages and runs a home care business for the mentally ill, she has been forced to hand over the business to her son (my husband) for him to run and manage. She suffered a minor heart attack and her doctor advised her to stop running the business, she knows she needs to do this in order for her to be able to claim disability.

What would be the process for her to hand over the business legally to my husband?
Will my husband need to get a license to manage the business - she already has one in her name, I know nothing about business; so I am not sure if the business license can be handed over to him....
Regarding the checks from the organizer/sponsor for the mentally ill person, my fear is that legally on paper my husband will be the business owner/manager but his mom will still be able to collect the checks for the patients....is this even POSSIBLE?

I have so many questions and concerns about him taking over...

My husband is willing to take over the business, but I made it very clear to him, that he needs to be certain that the checks will be under his name, not just the business name.

I agree that this is too complex for an internet forum. However the bolded indicates that you have a fundamental lack of understanding of how a business works. Payments to a business should NEVER be made out to the personal name of a business owner or manager. Those checks should always be made out to the business. If his mother no longer owns the business, she would no longer be able to collect the checks. If his mother still owns the business but employs him as a manager, then she should be controlling the money and paying him a salary.

As far as the rest of things is concerned, he needs to be speaking to people that can advise him as to whether or not he needs a license to own or manage such an enterprise and as to whether or not he has the qualifications to obtain said license.