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dkennedy
dkennedy, Attorney
Category: Business Law
Satisfied Customers: 6009
Experience:  JD degree, business owner
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I am divorced and want to start a business. What kind of legal

Customer Question

I am divorced and want to start a business. What kind of legal company should I set up to protect my future income from my greedy ex-wife?
Submitted: 5 years ago.
Category: Business Law
Expert:  lwpat replied 5 years ago.
Your ex wife will have no claim on any future business since your divorce is over with. As to the business entity, most people chose an LLC. You can set it up yourself at the state website and the bookkeeping is fairly simple.
Customer: replied 5 years ago.

My ex-wife gets child support (my daughter is 11) but does not cooperate during visitation or regular communication with my child. She intercepts or blocks my emails to my daughter. She however wants more and more of child support. I am afraid that if my business flourishes she will claim more child support. I care for my daughter but do not want to give more money to my ex-wife because she does not cooperate at all and wants to keep me away from my daughter. I live in Claifornia and she lives in CT, which makes it even more difficult. Would it be better to have the business in my current wife's name and I become a shareholder or an employee?

Expert:  lwpat replied 5 years ago.
I am not sure how to answer your question so I will opt out and open the question to other experts.
Expert:  dkennedy replied 5 years ago.

Hello,

Maybe I can help you. You did not mention how large you expect this company to be, but you could do an LLC. You could be the only member. But, the money would be "earned" by the LLC, not you. You could, however, be an employee of the company. You would have to "go by the rules" and keep your business separate from the company business, such as bank accounts and so on. And, you would not be a shareholder. There are no shareholders with LLC's that is for corporations only.

You can register your LLC at the Secretary of State in California. It is very easy and inexpensive.

Customer: replied 5 years ago.
Thanks. I expect the company to do well and need to be optimistic. I therefore want to set in place sufficient legal measures to protect my income because I have two other kids and wife to support. If I form a S corporation, I could have more partners or shareholdrs but that would involve more paper work....and I could set the rules in terms of decision making powers and ownership. Does this sound doable?
Expert:  dkennedy replied 5 years ago.

Yes, a corporation is a lot more paperwork. You could have as many members as you want in the LLC, too. But, they would not be the same as shareholders. There is a difference. An S corp would be another way to go. Whatever you do, make sure it is not just a "sham" company, because they will try to "pierce" it in court.