How can I, as a minor, sign binding contracts for my LLC by adding someone over 18?

Question from nicky, How can I, as a minor, sign binding contracts for my LLC by adding someone over 18?

Answer from AI:

Understanding the Basics

In the United States, minors (individuals under 18 years old) generally cannot enter into legally binding contracts. This is because contracts signed by minors are often considered voidable, meaning the minor can choose to honor or void the contract. However, there are ways to navigate this issue if you are a minor and need to sign binding contracts for your Limited Liability Company (LLC).

Adding an Adult to Your LLC

One common solution is to add an adult (someone over 18) to your LLC who can sign contracts on behalf of the company. Here are the steps you can take:

1. Forming the LLC: When forming your LLC, you can list an adult as a member or manager. This person will have the authority to sign contracts and make decisions for the LLC.
2. Operating Agreement: Draft an operating agreement that outlines the roles and responsibilities of each member. Specify that the adult member has the authority to sign contracts on behalf of the LLC.
3. Filing with the State: Ensure that the adult member is listed in the necessary state filings, such as the Articles of Organization. This makes their role official and recognized by the state.
4. Power of Attorney: You can also grant a power of attorney to an adult, giving them the legal authority to act on behalf of the LLC. This document should be drafted carefully and may require notarization.

Legal Considerations

It’s important to understand the legal implications of adding an adult to your LLC:

• Fiduciary Duty: The adult member will have a fiduciary duty to act in the best interest of the LLC. This means they must make decisions that benefit the company and its members.
• Liability: The adult member may also share in the liability of the LLC. Ensure they understand their responsibilities and potential risks.
• State Laws: Different states have varying requirements for LLC formation and management. Check your state’s specific laws and regulations.

Consulting a Legal Professional

Given the complexities involved, it’s highly recommended to consult with a legal professional. An attorney can help you:

• Draft the operating agreement and power of attorney documents.
• Ensure compliance with state laws and regulations.
• Understand the legal implications of adding an adult to your LLC.

For more detailed information, you can refer to resources such as the [Small Business Administration (SBA)](https://www.sba.gov) and your state’s Secretary of State website.

Conclusion

While minors generally cannot sign binding contracts, adding an adult to your LLC can provide a solution. This adult can act on behalf of the LLC, ensuring that contracts are legally binding. Always consult with a legal professional to ensure that all documents are properly drafted and that you comply with state laws.