Starting LLC Legal Issues

2 Replies

Hey everyone. My brother and I want to start our LLC here soon. As we were getting ready to submit everything to the state, he discovered that due to some sort of oversight, his divorce never went through. It was filed, but never finalized. He and his wife have been separated for 2+ years now with very little, if any, contact. They were married and separated in Arizona and she now lives in California. He is going to get the process started again right now and that leads me to my question.

If we were to get our LLC going while he is still technically married, would his "wife" be entitled to any part of the company? Would it be better to start the LLC with just me as the sole owner, and then once he finalizes his divorce, add him to the company? We basically don't want to risk her getting any sort of ownership in our company. Any advice would be much appreciated.

If it were me I'd wait until the divorce is finalized, I knew someone who passed away shortly before a divorce finalization, it got very expensive for the heirs.  This was in CA not AZ though

Originally posted by @Zachary Cuneo :

Hey everyone. My brother and I want to start our LLC here soon. As we were getting ready to submit everything to the state, he discovered that due to some sort of oversight, his divorce never went through. It was filed, but never finalized. He and his wife have been separated for 2+ years now with very little, if any, contact. They were married and separated in Arizona and she now lives in California. He is going to get the process started again right now and that leads me to my question.

If we were to get our LLC going while he is still technically married, would his "wife" be entitled to any part of the company? Would it be better to start the LLC with just me as the sole owner, and then once he finalizes his divorce, add him to the company? We basically don't want to risk her getting any sort of ownership in our company. Any advice would be much appreciated.

Why risk putting your brother on the LLC if there is even a small chance of that happening?? I think you should leave him off for now, and create a legal ownership and distribution contract so things are clear on the business and money side of things between you, and his not being on the LLC wont be a detrement to his part in the business.