LLC / Married Couple

TheFresh

Hi Everyone,
 
I`m new to this site/forum and was hoping to get an answer to a hopefully simple question.
I`m starting up a new LLC and one of the few remaining questions I have involves the following;
 
The reason I`m setting my business up as an LLC vs. a partnership is due to the fact I`d like to limit my personal liability.
To give my wife a sense of involvement however I`d like to give her 50% ownership of the company, the other 50% would obviously be mine.
My wife is currently employed full-time but hopefully in the future she can work part-time for our company. For the next few years though she will be a "silent partner/owner".
Since we`re married we can file the LLC`s tax as a single entity from what I understood.
I was just wondering if there are any downsides or objections to this kind of approach in setting up my business. Is it ok to appoint my wife 50% ownership and a title of say vice president even though she will have 0% activity in the company for the time being?
Is there another way to have my wife`s name on the LLC without her requiring to work for the company?
 
I hope someone with experience or expertise in this area can assist me.
 
Thanks!
 
 
- James

TheFresh

That is a helpful reply, thanks Eric, I appreciate it.
 
I won`t be looking for any outside investments at any point, if at one point someone is interested in purchasing the company I can either sell all assets or just transfer everything over to my 100% ownership.
 
I`ll await more replies regarding taxation / accounting.

infinique1

I think it is not a wise decision to have partners involve in the company when they cannot commit to it full time. Moreover, relationships can sour at any moment and I don't think you wish to put yourself in the risk of destroying the business in the event both partners cannot see eye to eye in business decisions or personally.