Legal Question in Business Law in Minnesota
sole proprietorship
my brother files taxes for my mother's business (left to her by my father upon his death). he includes a schedule ''c'' using his name as the sole proprietor. where does this leave my mother or the other siblings upon my mother's death?
2 Answers from Attorneys
Re: sole proprietorship
Is the business incorporated? If not, why not? If a sole proprietorship, agreements and documents need to be in place to establish ownership in your Mother. THEN, she needs a WILL or Trust to direct the distribution of business assets or income after her death.
Re: sole proprietorship
As I understand, your brother pays income tax on the business income as if he earned it. Who pays income tax on business earnings is evidence of who owns the business, but it is not conclusive evidence. What kind of business is it? Does it own titled property (real estate, vehicles, etc.), and if so who are they titled in? Does it have a d/b/a, and in whose name is it registered? How are bank accounts titled?
If you'll give me more details, I can get a little closer to an answer.
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