Do i hold any legal responsibility if i have it in my name?

Asked about 1 year ago - El Paso, TX

I have a family member who would like to start a business (purchase a taxi). He cannot have the business in his name because he doesn't have a license. However, I have one. He wants to get the taxi in my name, but somehow claim it as his. I went through a tough divorce and my ex has a judgment against me for house payments of $10,000. My concern is that she will come after the business, and it is not even mine. If I help him out and have the business in my name, can she come after this business and ask for the judgment? What options do I have to make it clear that it is not my business? Is there any form of a legal document that can protect him from her? He will also file for the taxes under his name.
Please note that, he is not going to drive it. He will lease it out to licensed drivers.

Attorney answers (3)

  1. Celia R Reed

    Contributor Level 20

    3

    Lawyers agree

    Answered . You absolutely do not want to do this. You are exposing yourself to liability and fraud claims by your ex. You should sit down with an experienced business attorney to clarify the risks in entering into this type of arrangement.

    Please note that I am answering this question as a service through Avvo but not as your attorney and no attorney-... more
  2. Michael Charles Doland

    Contributor Level 20

    3

    Lawyers agree

    Answered . With your additional facts added to your prior posting, I still think it is very risky and a poor idea.
    You are taking the word of someone circumventing the law that he will pay insurance, taxes, hire licensed drivers and that doesn't even address your family law issues.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  3. Frank Anthony Natoli

    Contributor Level 20

    3

    Lawyers agree

    Answered . This has "see you in court" written all over it, but I suspect you know that already which is why you are posting the question.

    It would appear that your family member would suffer the greatest exposure. Should your ex-wife discover the business interest in your name she can add that to the list of assets to go after. She may not be entitled to any managerial or voting rights in the business but she sure can go after your financial interest in the company and this presumably would really be your relatives interest.

    I suggest you consult a lawyer in private to explore your options in more detail.

    Most of us here, including myself, offer a free phone consult.

    Best regards,
    Frank
    Natoli-Lapin, LLC
    (see Disclaimer)

    The law firm of Natoli-Lapin, LLC (Home of Lantern Legal Services) offers our flat-rate legal services in the... more

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