Legal Question in Business Law in New Jersey
A friend and I decided to build an Internet-based business over a year ago and create an LLC. She didn't want her name officially on the LLC because she stills receives some type of gov't money (related to disability) that would end if she was shown to have an income. So her husband established the LLC through Legal Zoom in the state of NJ where they both live, and named myself and him as co-owners. My friend/invisible partner is listed on the website as the VP of Sales & Marketing and will be responsible for bringing revenue into the company. My question: is this kind of set-up something that is either 1) illegal..or 2) a potential minefield of issues for the future since she isn't named on any of the LLC documents?
3 Answers from Attorneys
No. LLCs are permitted to have non-owner employees. If you have any additional questions, please feel free to contact my office at 732-663-1500.
Thank you.
The kind of problems you have are typical of people who try the "do it yourself" route in forming a business. Since only the Certificate of Formation was filed, there are significant un-answered questions concerning the rights and responsibilities of the members. Also, it sounds like you are being dragged-into a scheme to de-fraud the government. You need to immediately consult with a tax and business attorney to straighten-out this mess.
I hope this helps!
Ron Cappuccio
www.BusinessEsq.com
I agree with Ronald. You may have some big problems here at some point.
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