Legal Question in Business Law in New Jersey

Re: Sole Proprietorship

The answer is ABSOLUTELY CLEAR. You do NOT want to be a member. The idea of the LLC is to insulate the family assets from business liabilities. Even if a creditor or the government can successfully attack your husband, your assets would be protected. As a member of the LLC you would have potential liability for Sales and Use Tax, State and Federal Employment Taxes and NJ Disability and Unemployment contributions.

If you would like further information on the tax and legal issue, there is free information on my website http://www.taxesq.com

I hope this helps!

Re: Sole Proprietorship

Why do you want to be listed? For most purposes, a one-person LLC has no different income tax consequences for spouses than if both spouses were listed. If you were listed a second tax return would be required to be filed (Form 1065) as the business would now be considered a partnership. Plus, if the business has employees who receive wages, you would have exposure for personal liability if the wages or employment taxes were not paid/deposited. I need more information about your concerns to properly answer this question.