My sister and I are purchasing a hair and tanning salon in Benton Harbor, Michigan, and we would lik
Question: My sister and I are purchasing a hair and tanning salon in Benton Harbor, Michigan, and we would like to establish an LLC for it. We would also like our spouses name on the business, but I don't know who or what is actually considered a member. We would like to set this up in the best possible way, but we could really use some assistance in understanding what that best way is.
Answer: I recommend a Limited Liability Company all four of you as members. The ownership would be set up with each couple as one-half owner. There would be survivorship rights within each couple. I would recommend the managers of the company would be you and your sister. I would include rights of first refusal if one couple sought to sell and a buyout provision in the event one of the couples passed away. I would include provisions that would allow for additional members upon unanimous consent and for additional non-voting members in the event that you had a silent investor. The complete package is (Articles, Operating Agreement, Certificates of Ownership, Initial Minutes, IRS Employer ID Request and State of Michigan Tax Filing). I will provide my recommendation to you on the type of LLC to establish and the cost. If we can help you it will be a pleasure. I have found that when individuals come with internet prepared legal forms, it cost much more to straighten out their companies, than if we had prepared the Limited Liability or Corporation documents in the beginning. I recommend that you have one of our lawyers prepare your legal forms and through our assistance, get a law firm on your team of advisers from the beginning. This will help promote a successful business startup.