Question of the Week

Posted: Sep 9, 2021 | Author: Cornerstone Compliance Team

business accounts compliance

Question: Can a minor be an owner of an LLC?

Answer: Yes. While this arrangement may pose interesting liability and ownership issues for the other members of the LLC, especially if it is member-managed, it is possible for a minor to have an ownership interest in an LLC.

For purposes of holding an account at the credit union, the LLC would still need to provide authorized signers, which will likely not include the minor. So, this distinction will often not matter in the ordinary course of business.

Most of the time, these kinds of LLCs will limit any controlling interests by the minor, or even hold those interests in a trust so that an adult trustee can manage and vote. But a trust is not necessary for a minor to be part of an LLC.