Can a minor co-own an LLC in NY? Do the Parents need to be authorized signatories in NY?
2 Answers from Attorneys
A minor cannot enter into any contracts or be bound by them except in limited circumstances, but it does not mean that there is not a way to handle this. No one is going to check you ID or ask about your year of birth on the formation documents. So technically it can be set up straight away. But operating the business becomes a problem because any contracts, for example, that you enter into can be voided if it becomes known that you are not of a legal age to be bound by them. Further, and I would have to check, there may be a statutory age restriction as well.
In many cases, we use a trust that protects the minor's interest until they are of age.
If you and/or your parent would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.
THe minor can hold the interest but not sell it, pledge it, etc. Whether thE "ETC" includes the LLC engaging in transactions is another question. It would be best if title were held in the name of a custodian or guardian. If you are, effectively, emancipated and you wish to prevent your parents from stealing your money, we can DEFINITELY set up the interests and their management to protect your assets without crippling the ability of the company to do business. [email protected]
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