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    6 Replies Latest reply on Jun 6, 2010 11:50 AM by Emona7

    Have you been asked to be a silent partner?

    caffeinated Scout
      So I'm laying in bed last night about to fall asleep when I hear my cell phone ring. I screen the call and see by the caller ID that its my brother. I answer obviously and he starts right into it. "Hey, I'm forming an LLC and I want to know if you want to sign on as a silent partner" Half asleep I reply "Ok I say but can you take a step back for a second?" So he begins to tell me his idea and I cant be more excited for him. The reason he asked me to be a silent partner is because he trusts me and if anything was to happen to him (god forbid), the company would be turned over to me instead of being up for grabs. I feel like I'm in his corporate will or something. He goes on to say that if the company turns a profit, I'd see a cut, but he's expecting a loss in the first year which can be written off??

      My question to everyone on here is, although he is my brother and I'd do anything for him, should I be asking/negotiating for certain things before signing any paperwork to protect myself? Am I liable for anything? Am I on the hook legally? What happens at tax time? Not only was I caught off guard but I really dont have the vocabulary to understand everything he went over so maybe I need some business law basics...