If a business is in my name but I don’t run it and the law is being broken, could I get in trouble for how it’s being ran by my dad?

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If a business is in my name but I don’t run it and the law is being broken, could I get in trouble for how it’s being ran by my dad?

I was forced to put a business in my name or get kicked out. My dad runs the business and pays all his

employees under the table. I don’t have anything to do with the business. Will I go down for any of that if

I don’t have anything to do with the business?

Asked on August 6, 2017 under Business Law, Mississippi


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, you could get in trouble if due to your ownership (e.g. say you are officially the only owner; or a majority owner, at least on paper) and/or your position withe company you are the person who logically should be responsible for payroll and payroll taxes; if so, you can be held liable for what occurs at the business, even if you in practice step back and let your father run it for you. There are certain responsibilities you cannot shirk; one of those is for payroll taxes (another is for sales tax) if your position or ownership makes you the appropriate responsible person. (For example: in an LLC, one member must be responsible for tax matters; if you are the only member--i.e. the only official owner--you are, by definition, responsible.)

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption