Legal Question in Business Law in California

A couple of thoughts on this: (1) the business should be set up as a corporation or LLC; (2) it should be run with separate bank accounts, no commingling of business and personal assets, and the books should be kept by someone who knows bookkeeping and will keep after it; (3) an appropriate amount and kinds of insurance, both casualty and liability; (4) if you have significant personal (separate, non-community) assets, don't hold stock in your name or accept any officer or director titles; and (5) learn about how a married couple's property gets classified as separate or community and how it can change (transmute) from one to the other.

As a Franchise Attorney I agree with the other attorney answer. One other issue: how did your husband take over the business? Did he use community property assets? If he did, then there could be a tracing argument back to all community property assets you both hold as community property. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation