Q: My father wants to take over a printing business and wants me to put the business in my name. He has an investor friend
who will be giving him 60k to take over the business and they along with the current business owner will be running the business. Even though the business will be in my name, I will just be an employee. My father says I am only the owner "on paper". His plan is once the investor is paid back the 60k, my dad will get 50% of the profits, the investor 30% and the current owner 20%. But that does not sound fair to me, since I will legally be the owner and will be taking all the responsibility if the business fails. The reason he does not want to put the business in his name is because his last business that he owed for 15 years went bankrupt and because I do not have any assets (I'm a 25 year old recently unemployed woman who lives with her parents). Once I sign the papers and the business is officially in my name, what legal rights would I have?
A: First as the owner you will be responsible for all debts and operations of the business. So to start, the business should be put in a corporation or LLC. You can be the sole manager and thus have control of the business and the investor and your father can own percentages of the business as well. I think you need to speak to an attorney and make sure you are protected so that this business does not put you in bankruptcy if something goes wrong. If the business leases property, you may need to sign the lease as a guarantor. There are a lot more facts that need to be understood. If there is no attorney involved get one so you and everyone else for that matter is protected.
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