Business in your name... or your wife's?

billc

LawnSite Member
Location
Rochester, NY
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?
 

upsondown

LawnSite Senior Member
Location
culpeper, va
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

LawnSite Senior Member
Location
culpeper, va
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

LawnSite Bronze Member
Location
CT
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

LawnSite Member
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

LawnSite Bronze Member
Location
Cape Cod, MA
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

LawnSite Senior Member
Location
Framingham,MA
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

LawnSite Platinum Member
Location
Illinois
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.
 

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