Can a Minor Sign a Contract Under an LLC Without an Adult?

Question from johny98, Can a Minor Sign a Contract Under an LLC Without an Adult?

Answer from AI:

In the United States, the ability of a minor (someone under 18) to sign a contract, even under a Limited Liability Company (LLC), is generally limited. Here’s a breakdown of the key points you need to understand:

Legal Capacity to Contract

Minors and Contracts:

• In most states, individuals under 18 are considered minors and generally lack the legal capacity to enter into binding contracts.
• Contracts signed by minors are typically considered “voidable,” meaning the minor can choose to either honor the contract or void it.

Exceptions:

• Some states allow minors to enter into contracts for necessities like food, clothing, and shelter.
• Emancipated minors, who are legally considered adults, can enter into contracts.

LLC Ownership and Management

Forming an LLC:

• Most states do not have age restrictions for owning an LLC, meaning a minor can technically be a member (owner) of an LLC.
• However, managing an LLC and signing contracts on its behalf is a different matter.

Management Roles:

• LLCs can be member-managed or manager-managed. In a member-managed LLC, all members (including minors) can participate in management.
• In a manager-managed LLC, only designated managers (who are usually adults) handle the day-to-day operations and sign contracts.

Practical Considerations

Parental Involvement:

• Even if a minor can own an LLC, it is often advisable to have a parent or guardian involved in the management to ensure contracts are legally binding.
• Parents or guardians can co-sign contracts to provide additional legal assurance.

Legal Advice:

• Given the complexities, it is crucial to consult with a legal professional to understand the specific laws in your state and to ensure that your business activities are legally sound.

Steps to Take

1. Consult with a business attorney to understand your state’s specific laws regarding minors and contracts.
2. Consider having an adult co-sign any contracts to avoid potential legal issues.
3. Explore the possibility of having a parent or guardian act as a manager in a manager-managed LLC.
4. Review your LLC’s operating agreement to ensure it complies with state laws and addresses the involvement of minors.

Resources

For more detailed information, you can refer to:

• Nolo’s Guide to Forming an LLC
• LegalZoom’s Article on Minors Forming an LLC

Note: This information is intended to provide a general understanding of the topic. For personalized legal advice, always consult with a qualified attorney.