Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Hi there. You have a couple of options. One, because California is a community property state, you can simply list yourself, and the result will be that it is still owned 50/50. This would result in you being a single-member LLC and as a result you would not need to file a separate tax return for the LLC..although the net tax result would be the same--you would simply save the expense of the separate return. In that case, you would set up the operating agreement with you as the sole member, and include provisions requiring spousal consent relating to divorce. Two, if you want the Operating Agreement with both of you as members, it would be pretty much the same, except that the LLC would have to file its own tax return. The issue with "Partnership" is that you want the LLC to be taxed as a partnership...that is why you select that option...as a result the LLC is treated as a flow-through entity and you do not have the issue of being taxed at both the entity level and the individual level. The other option is to be taxed as a corporation, but in that case you do have the risk of being taxed at both levels.
I hope this has given you the guidance you were seeking. I wish you the best of luck!
The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
That would create an inconsistency, so you should put both of you in the operating agreement. But your operating agreement will not be that much different. You will just want to put in your operating agreement that although you are both members, you have the absolute right to make any and all decisions, major and minor, and that the consent of your husband is not required on any document requiring action by the LLC. You will also want to address what happens in the event of divorce. :)
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).