What's benefit of having my wife as 51% owner of my LLC?

[Marshall Hooper]

I heard in a podcast that both @Brandon Turner and the guest had their LLC's set up so that their wives were 51% owners. I know that women get more favorable terms for SBA loans, but I'm not sure what kind of SBA loan these guys would be applying for. What are the other reasons someone might do this?

[Account Closed]

Originally posted by @Marshall Hooper:

I heard in a podcast that both @Brandon Turner and the guest had their LLC's set up so that their wives were 51% owners. I know that women get more favorable terms for SBA loans, but I'm not sure what kind of SBA loan these guys would be applying for. What are the other reasons someone might do this?

 Seems odd to suggest that the wife should have 51% ownership unless she is the person who is managing the business.

I think you are in a community property state so both have to sign in order to sell a property anyway. Whoever has 51% ownership makes all of the decisions so it should be the person most involved. My wife and I are 50%/50% . I do most of the work and we sit and have dinner at a fine restaurant to plan our future and our investments together and write the planning session off on our taxes. Getting a loan for an LLC is harder than people think. Normally the LLC has to show cash flow and assets to even interest a lender. The LLC has some value, but people overestimate it's usefulness. A good umbrella insurance policy can sometimes accomplish the same goals.

[Cara Lonsdale]

The benefit is you get to stay married to a happy wife....lol

Kidding!  

There are many benefits depending on what you plan on doing with the LLC as a business. I knew of a commercial janitorial company that had the wife structured as the 51% owner and "CEO". It helped them to secure HUD contracts for cleaning out HUD homes prior to going on the market because the business was considered a woman-owned business and she was in leadership.

So, if you are intending to need any "help" along the way, or get a leg up on another business you are competing with, it makes good sense.

[Caleb Heimsoth]

I don’t know if that would be a good idea but another interesting strategy I’ve heard is make your wife (or whoever is the less active partner in the business) a 1 percent owner and then it makes it stronger for asset protection.

Not a lawyer consult a lawyer for legal advice

[Jon Lanclos]

I don’t see why it would help for asset protection - I’m not a lawyer - a certified woman owned business helps in getting government contracts and maybe city contracts 

[Steve Vaughan]

Neither one of us own 50%. Transfer taxes and such get ya if you sell 50% or more in a calendar year. Our idea is to own 48% each, the 2 kids get 2% each. They get to learn about the B and I side of earning income and we can stay under the transfer tax radar at exit. Check if your state has minimum age requirements for members though.