You may wonder, “Can a minor own an LLC?”
That is a good question, especially if you are a young person with a great business idea or you are a parent of a teen who wants to start a business.
No matter how great of an idea a teen or minor has, it does not mean that he or she can jump in and form an LLC.
Legally, most states require budding entrepreneurs to be at least 18 years old. If you are a teen or a parent of a teen that thinks an LLC is a good idea, you may have to wait before you begin the business.
Can a Minor Own an LLC by Setting Up a Partnership?
If you still are wondering, “Can a minor own an LLC?” via a partnership, that may be a possibility. In this case, the partner would be an adult and would be responsible for the formation and running of the business.
The minor would assume a passive interest. However, if you live in a state with strict age requirements, you usually can’t do this.
Book a call to speak to us here: https://mollaeilaw.com/start. You should always consult with a lawyer to explore your options.
Can a Minor Own an LLC or Organize the Entity in Popular States Like Delaware or Wyoming?
You might consider the following – “Can a minor own an LLC or organize an LLC business in one of the popular states, such as Delaware or Wyoming?”
To find out if this can be done, again, you need to speak to an attorney – someone who has in-depth experience along these lines. He can explain your options, and tell you about some of the legal ramifications of forming an LLC company.
Again, book a call to speak to us here at https://mollaeilaw.com/start for all the details.
To create an LLC, one or more people, or an entity, such as an LLC or corporation, can serve as owners or members.
An organizer is given the responsibility for setting up the LLC and completing and signing the articles of organization. You can have an attorney act as an organizer if you wish. The organizer also files the articles with the Secretary of State’s office.
When the articles are filed, the LLC becomes official. Usually, a member is an LLC member, but he or she doesn’t have to be.
Can a Minor Own an LLC in a Popular LLC State Like Wyoming or Delaware?
If you want to know, “Can a minor own an LLC in a popular LLC venue, such as Wyoming?” you may be able to do something, provided you obtain the right legal advice.
That is when you want to book a call to speak to us here: https://mollaeilaw.com/start.
Each state has its own laws concerning LLCs. Therefore, some states may be more lenient than others about minors owning LLCs or participating in the activities.
States that Restrict Minors from Owning an LLC
States that are more restrictive in this respect include Colorado, Illinois, Minnesota, Texas, and Oregon. With respect to other US states, LLC laws do not elaborate on the age of the organizer. This is true for some of the more popular states, such as Wyoming, Delaware, California, and Nevada.
From the current legislation, it appears that minors can form an LLC in the aforementioned states. However, you still should contact an attorney concerning the formation.
Again, book a call to speak to us here- https://mollaeilaw.com/start to get the advice and help you need.
If you reside in a state that will not permit the creation of an LLC by a minor, you can always set up an LLC in a state that will permit it. Or, the minor may also have someone, preferably a lawyer or a parent, serve as the LLC organizer.
How Can a Minor Own an LLC with the Least Amount of Hassle?
At this point, you may be wondering, “How can a minor own an LLC without any complications?” That is certainly an understandable concern.
To elaborate on this subject, you have to know a little more about the different ways you can set up the LLC and run it. For example, an LLC’s members may either be business entities or individuals. Plus, this type of business can have one or several thousand members. Therefore, a minor can become a member of an LLC without creating it.
However, with that being said, you can run into some problems when an LLC allows minor members to be a part of the business.
This can be a real issue if the LLC is member-managed. In this set-up, each member shares in the operation of the business.
Problems also emerge when it comes to the enforcement of contracts. That is because the law gives a minor the ability to enter into agreements as well as void them. Therefore, most contracts between minors and other parties can be voided by the minor.
If the minor does void a contract, he or she must return anything of value they received from the agreement. This might be property or cash. The only instance a minor cannot break an agreement is for shelter, clothing, or food.
In addition, many US states will not allow a minor to enter into some agreements at all, such as contracts that cover the sales or purchase of real property. Because of these exceptions in the law, some vendors may feel reluctant about doing business with an LLC that is managed by a member under 18 years old. For example, a company may not want to extend credit to an LLC because the agreement could be voided.
With that being said, you can avoid the issue if one or more of the LLC’s members is over the age of 18. They may be represented by the minor’s parents, or an adult brother or sister or a friend. In this case, the adult members could enter into contracts on behalf of the LLC.
A statement of authority can also be filed in the Secretary of State’s office. This document is used to ensure the enforcement of contracts by adult members in the LLC.
Can a Minor Own an LLC as a Passive Member?
If you wonder, “Can a minor own an LLC as a passive member?” that is another alternative you may want to consider. Again, you will need to get the appropriate legal advice. You can do this easily when you book a call to speak to us here: https://mollaeilaw.com/start.
Doing so will give you the confidence you need to form an LLC in compliance with your chosen state’s requirements.
You may be able to form a manager-management structure for your LLC as well. This type of structure is run by one or more named managers. Managers do not have to be LLC members. They can be members or outsiders.
Any minor members can take on a passive role in the company if the LLC is member-managed. In most jurisdictions, a member management LLC is the default.
To ensure your LLC is member-managed, you need to specify this in your company’s operating agreement or articles of organization.
What To Do Next
IF you are still asking the question, “Can a minor own an LLC?” that is understandable. You need to sort out several details before you consider this type of arrangement.
To learn more about how to form an LLC of this type, it is best to book a call to speak to us here: https://mollaeilaw.com/start.
Once you have taken the initiative, you will feel better about proceeding with any plans.
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