What is the name of your state (only U.S. law)? Ohio
My wife..soon to be ex-wife is a 99% owner of an LLC with her mother holding the other 1%..we did this based on recommendation of an attorney. The thought was in Ohio you must have two Members to qualify for LLC status and I did not want to be a member for liability reasons. My question is, I have found out since going through documents that she was significantly under-reporting the business income, through not reporting cash transctions and by claiming expenses that were not valid and not business related. Her accounted gave us a single number for our joint personal return and now im concerned. How liable am I for her business filing if I am not a Member? Should I refile the last few year individually and pay the taxes? Also, to complicate things I'm having to hire a forensic accountant to determine her true income, my best guess and my attorney's is its probably double what she has stated.
Thanks for an advice
My wife..soon to be ex-wife is a 99% owner of an LLC with her mother holding the other 1%..we did this based on recommendation of an attorney. The thought was in Ohio you must have two Members to qualify for LLC status and I did not want to be a member for liability reasons. My question is, I have found out since going through documents that she was significantly under-reporting the business income, through not reporting cash transctions and by claiming expenses that were not valid and not business related. Her accounted gave us a single number for our joint personal return and now im concerned. How liable am I for her business filing if I am not a Member? Should I refile the last few year individually and pay the taxes? Also, to complicate things I'm having to hire a forensic accountant to determine her true income, my best guess and my attorney's is its probably double what she has stated.
Thanks for an advice