Can a Minor Control an LLC in the USA?

Question from Orion, Can a Minor Control an LLC in the USA?

Answer from AI:

When a minor is involved in creating a Limited Liability Company (LLC) with someone over 18 in the United States, several factors determine who will have control over the LLC. Understanding these factors is crucial for ensuring compliance with legal requirements and for the effective management of the LLC.

Legal Capacity to Form an LLC

In the United States, the ability to form and manage an LLC is generally governed by state law. Here are some key points to consider:

• Age Requirement: Most states require that LLC members be at least 18 years old to legally enter into contracts, which includes forming an LLC. This means that a minor typically cannot be the sole member or manager of an LLC.
• Role of the Adult Member: If a minor is involved in forming an LLC with an adult, the adult member will usually have control over the LLC. This is because the adult can legally enter into contracts and make binding decisions on behalf of the LLC.

Options for Minors in an LLC

While a minor cannot independently control an LLC, there are ways for them to be involved:

1. Minor as a Member: A minor can be a member of an LLC, but they will not have the legal capacity to manage it. The adult member will typically handle management responsibilities.
2. Guardianship or Trust: A guardian or a trust can be established to manage the minor’s interest in the LLC. This arrangement allows the minor to benefit from the LLC without directly managing it.

Legal Considerations and Advice

It’s important to consider the following when involving a minor in an LLC:

• State Laws: Since LLC laws vary by state, it’s crucial to check the specific requirements in your state. Some states may have unique provisions regarding minors in LLCs.
• Operating Agreement: The LLC’s operating agreement should clearly outline the roles and responsibilities of each member, including any provisions related to the minor’s involvement.

When to Seek Legal Advice

Given the complexities involved in forming and managing an LLC with a minor, it is advisable to consult with a legal professional. A lawyer can provide personalized advice and help draft an operating agreement that protects the interests of all parties involved.

For more detailed information, you can refer to resources such as the [Small Business Administration’s Guide on LLCs](https://www.sba.gov/business-guide/launch-your-business/choose-business-structure) or consult your state’s Secretary of State website for specific regulations.

Remember, while this information provides a general overview, each situation is unique, and professional legal advice is recommended to address specific circumstances.