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billc
03-02-2004, 07:01 AM
We are about to start up, and face a decision.

As I've crunched numbers I see that we PROBABLY have enough cash to start w/o getting a loan. At least we can start rolling.

However, if we want to play it safe, we could get a loan. It appears that it is easier for a woman to get a small business loan. So we're thinking of putting the biz in my wife's name in case we need the money.

What do you all think of the biz being in your wife's name?

mow2nd
03-02-2004, 07:04 AM
I wouldn't do it, but I dont know your wife.

billc
03-02-2004, 07:21 AM
Originally posted by mow2nd
I wouldn't do it, but I dont know your wife.
Please expand on your response. Does it come down to the individual wife? The plan would be that I would run the business...it would just be in her name.

upsondown
03-02-2004, 07:33 AM
I would advise you to speak with your accountant and your attorney on this. There are many legal and tax law ramifications that only those two professions can give wise counsel on.
Dave

upsondown
03-02-2004, 07:35 AM
also.......you may want to speak with them concerning incorporating in your state. Having an established corporate veil in the event of future claim issues will be well worth implementing from the onset of your business.
Dave

Tvov
03-02-2004, 07:36 AM
Usually the "loan folks" look at your total financial situation, so even if it was in your wife's name, your information may still be looked at.

Why is taking out a loan "playing it safe"? I would think it is the other way around.

Also, remember that you don't need the newest and coolest equipment in order to get mowing.

greendave
03-02-2004, 07:38 AM
I guess what he's asking is how solid your relationship is with your wife. Some things to consider: if you two separate at some time in the future, who do you think will get the busness??? What do you think it will 'cost' you to keep it? How will this setup affect your relationship with your wife? Will she actually be the CEO? Who will make the ultimate operational and financial decisions? Who will bear the burden of the loan if your business venture doesn't go well financially? MANY good marriages have been ruined by a husband - wife partnership. Thank God my wife and I have done very well in our business together: 14 years, and we're still happily married. Be very very sure about going into business with a spouse unless you're SURE you can survive each other, even then.....just some things I've seen.....

Shuter
03-02-2004, 07:39 AM
The only reasons for I see for putting the business in your wife's name only ( not just yours or both) 1. you have bad credit or 2. if you are seeking woman/minority owned status for bidding town or state work.

slplow
03-02-2004, 08:37 AM
Keep it in your name and put your house in here name only. If some one sues your buisness they can get your house. so get your name off your house.

DLCS
03-02-2004, 09:02 AM
Originally posted by slplow
Keep it in your name and put your house in here name only. If some one sues your buisness they can get your house. so get your name off your house.

I know alot of doctors and lawyers who do that for the same reason.

upsondown
03-02-2004, 09:16 AM
Like I said previously - talk with your attorney and your accountant.......... A good lawyer can easily break a corporate veil even though the house is one spouses name and the business in the other - if he is able to prove that it was devised as a means of escaping personal liability - the assets of a spouse can be attached for any liabilities. Many of people are running on luck and legal advise from friends - but nothing in which to hang their legal hat on - and that's dangerous territory. If you don't have a corporate lawyer - get one. Not all lawyers are qualified to practice corporate law - nor do they know the current regulations - because they change as frequently as tax laws do, and vary from state to state. If it costs you $500 for an intial consult - it will be well worth it down the road.
Dave

leadarrows
03-02-2004, 10:50 AM
I ask an attorney about this when I started my business and in Indiana only 51% of the business needs to be in the womans name for minority benefits to apply. He ask me point blank how much do you trust your wife? The reasons he ask are obvious I think.

dishboy
03-02-2004, 11:06 AM
You can always trust your wife until the day someone files. After that you can trust her to make decisions that benifit her only.

Lux Lawn
03-02-2004, 11:34 AM
I would also say talk to an attorney and if you can get incorporated.I got Incorporated as soon as I went full time and got married shortly after that.The one advantage that I have being Incorporated is if you get sued they can't take any of your personal belongings.If my business was in my wifes name I could collect unemployment in the winter I pay into it all year and have nothing to show for it for myself.I love my wife and think we will always be together but you never really know what can happen.

Randy Scott
03-02-2004, 11:37 AM
First question is, do you have a business plan?

If not, no bank is going to give you a loan strictly for the business. You may get a home equity loan if you qualify, but to just walk in and ask for money for the business most likely isn't going to happen without a sound business plan.

upsondown
03-02-2004, 12:14 PM
Originally posted by Randy Scott
First question is, do you have a business plan?

If not, no bank is going to give you a loan strictly for the business. You may get a home equity loan if you qualify, but to just walk in and ask for money for the business most likely isn't going to happen without a sound business plan.


His question wasn't about getting a loan.

gramps
03-02-2004, 12:26 PM
Originally posted by slplow
Keep it in your name and put your house in here name only. If some one sues your buisness they can get your house. so get your name off your house.
That won't fly;) ;)

upsondown
03-02-2004, 04:06 PM
Lawyer............ It's in the YELLOW BOOK........YELLOW BOOK........YELLOW BOOK :blob2:

qualitylandscaping
03-02-2004, 04:10 PM
You could probably get a state grant to start the business with if it was in your wifes name.. States love to give money away to minority owned businesses..

Lawn Dog2001
03-02-2004, 04:11 PM
Like others have said you need profesional advice from your account, and lawyer on this matter. This is an important decision.

Also, what would happen in the unfortunate incident of a divorce? I am not saying that would ever happen to you, as I dont know your situation. But if it were to happen, you stand to lose everything you worked for.

qualitylandscaping
03-02-2004, 04:12 PM
Ohhh wow.. Didn't notice we both live in the same county:eek:

GOOD LUCK IN NY... ITS A PITA HERE!! Taxes, fees, surcharges on everything..

slplow
03-02-2004, 05:31 PM
In connection with putting the house in your wife's name also take a Homestead Agreement out so that no one can touch your home.

CNYScapes
03-02-2004, 06:31 PM
Nothing lasts forever, thats all i know.

jaybird
03-02-2004, 08:39 PM
oh boy here we go , im 53 now had a heart attack at 45 so my wife knew about as much as i did about contracting mowing ,fencing, site work etc. so we decided to set her up to be a d.b.a. it has worked out real well some advantages.some price breaks you probaly dont want to hear it, but mainly inspectors dont pick on women as much. women normally live longer than men. so in my case im trying to prepare my wife how to be a widow, with a in good income.