How Do I include My Children In My Business?

I’m currently in the research stage of starting an online business. I’d like to form an LLC and understand the process but I want my children to be members of the LLC and as such be entitled disbursements of profits like any other member. My children are all minors and as such can’t legally enter into a contract such as an operating agreement directly. Do I need to create a trust for each of them and have the trust buy into the business or can I sign the operating agreement on their behalf?

Asked on June 25, 2009 under Business Law, Indiana

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Making them employees is an option.  You can certainly try to create trusts for them like what child actors do and they are kept in such trusts until adulthood.  Your best bet: please sit down with a corporate attorney who can go through the nuances of creating an LLC, types of disbursements, etc. Try www.attorneypages.com and check his or her record at the Indiana State Bar.


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