My wife has a friend who has come into some legal trouble. Nothing extremly bad, but some things that may make it so she loses her license to operate her three day cares. If this does happen she has asked up to take over ownership until she has her problems resolved. She's a good friend and we're more than happy to help if we can, but the question is what kind of tax liability are my wife and I looking at in this situation? Also if anyone knows, is there some kind of custiodial ownership out there that will prevent us from having to deal with any of these issues.
2007-11-06 17:09:47 · 1 answers · asked by voelker_n 2 in Business & Finance ➔ Taxes ➔ United States
You need to discuss this with an attorney before you do anything.
There may well be laws on straw ownership of daycare facilities that could land you in serious trouble if you become involved.
Of course as the owner of the business you'd be legally required to file any tax returns and pay any taxes on the income of the business.
It doesn't matter how good a friend this person is. Sometimes you just have to say "No!" Being an enabler is NOT being a friend.
2007-11-06 18:28:15 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋