Running a business with your spouse

Every year, hundreds of New Hampshire married couples start joint businesses together, and to do so, many of these couples use the help of New Hampshire lawyers.

Their lawyer’s help may consist, for example, of planning with the couple and drafting for them an operating agreement for their husband-wife LLC. Even operating agreements for husband-wife LLCs involve important but difficult federal income tax issues, Social Security Taxes issues and issues under IRC section 199A. (Section 199A is the IRC section that provides annual 20% federal income tax deductions to the members of multi- member LLCs if their LLCs are properly structured.)

However, in any such married-couple joint deal, there is at least a theoretical possibility of conflicts of interest between the spouses. These conflicts may arise, for example, if the marriage in question is the second marriage for one or both spouses, and one or both spouses have children from their first marriage. In…

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