Can A Minor Be The Member Holding The Highest % Of Ownership In An LLC

I am forming a LLC for real estate investing (Wholesaleing). I was given some advice I would like to ask inquire about. Since I have a 10 year old daughter, I was told to make her the "CEO" (highest % ownership), making and paying myself as a consultant to the company or something like that. Reasoning: If someone attempts to sue the LLC, since a minor has the majority % ownership, it will make it very diffcult to go after the minor. Of course I would pay her to do odd jobs up to the max allowable amount according to the IRS. Is this legal, ethical? I am just asking, what are your thoughts on this?

Comments(7)

  • CBuford23rd June, 2005

    Ok, sounds like a bad idea. This was something that was proposed to me. It seems to be more problems than it is worth.

  • cjmazur22nd June, 2005

    people have discussed using "plan" building software that interviews you to build the plan.

  • JohnLocke23rd June, 2005

    Derrick,

    Use caution BIG BROTHER may be reading your post and it would be the firing squad for sure if they are.

    John $Cash$ Locke
    [addsig]

  • joecrane24th June, 2005

    I agree with Derick on this one.

    It used to be that the government could only use emminant domain for government uses such as a school or a road.

    Lately, they have been using emminent domain to take property that could be used for a higher tax base. That means they can take your house and put a Wal-mart in...which local governments have already done.

  • norrist24th June, 2005

    Try not paying your property taxes on a property you own "free and clear". It is intersting also to read the definitions of words like "real estate", "chattel", etc... There is a big difference between "own" and "control"..

  • JohnMerchant24th June, 2005

    See if the foreclosing bank would give you 30-60 days extension so you could find the estate representative and try to make a deal to take it "subject to" or otherwise buy the property from the estate.

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