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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I recently found out I was added as a member of an LLC with

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I recently found out I was added as a member of an LLC with no powers. I never received a profit or loss statement so I never claimed it on my taxes. I was told that the LLC has been disbanded since 2005 and it has passed the statue of limitations; thus I have no implications. I don't know when I was added and I never signed, to my knowledge, anything indicating that I am member. I was also told that I own 0.05 percent of the shares but there was no income. What are the ramifications and what should I do? The company is not publicly traded.

Thank you for your question. Please permit me to assist you with your concerns.

Being 'added' to an LLC is not enough--you have to formally agree to become part of the LLC, which involves some sort of a written contract or an agreement. As a consequence whatever you were stated is not actionable or provable--until you sign and agree to become a part of the LLC, this claim has no legal basis to you. There are as yet no legal ramifications because lawfully you own nothing, you are not a part of anything, and as a consequence there is no duty either to the company, the shareholders, officers, or the IRS.

Good luck.

Customer: replied 4 years ago.

But the other issue is that my name changed to marriage and they are asking me to verify my name and that I own 0.05 percent of the "shares". Also, they sent me a schedule K-1 1065 listing me as a partner with $0 indicated. Also, the company was formed in 1998, I was 17?

Thank you for your follow-up.

What specifically do you wish to accomplish? Do you wish to own a part of this company, or are you rejecting ownership?
Customer: replied 4 years ago.

I just wanted to know if this is even possible or illegal, because I don't recall being a member or signing to become a member. Is it fraud?

Thank you for your follow-up.

There is no inherent violation with someone who is a minor owning a company, however in that situation a guardian had to have consented, signed off, and controlled the shares. Plus, such a transfer would be 'voidable' at the wish of the minor until he or she came of age. Having said that, this appears suspicious and if you want out, you have an easy option available to you.

If you never signed anything, then this isn't a valid transaction. Consider sending them a formal letter stating that you never signed anything to become owner, you were never part of this entity, and that you wish no part of this entity going forward. That should be sufficient as there is no documentation either from you or your guardXXXXX XXXXXnking you to this entity.

Good luck!

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