Liability

[Bluefalcon]

I am 17 and i want to buy some real estate. Now, I have to options I can buy it straight away and go into a partnership with someone or buy it using a loan. I will need to consider both options carefully anyway.

Since I am 17 i can't bind myself by legal contracts so I would have to have my parents sign me into the C-corperation or S-coperation pretty much. They would put me as either 51% shareholder or Sole Shareholder depending on which method of buying I choose.

Now, first since I would appoint myself CEO, would I now be able to make decisions and put the company in a legal binding stuff now because I am CEO, but I am still 17?

Now, Say of instance something bad happened, God Forbid, and I had to go bankrupt. Now, what would happen? Would the governement be able to tap into my parents assests because I am under 18? If so is there away to prevent it?

I want to go ahead with this business but my parents won't sign because they think they will lose there retirement money and other assests because they are close to 60 and they don't want to lose it. Or any of there money.

[Karen]

How long until you are 18?

Karen

[Bluefalcon]

August 3, 2005

[pete]

First you need a better understanding of business.

Several times you mention "stuff." Hate to say if, but banks, and even parents, will want a better explaination than "stuff."

[Bluefalcon]

Is that better. They weren't really important parts. I know quite a lot about business, but when you say I am going to buy real estate and stuff, what does that have to do about business? It was a generalizatioon so it would include more scenarios.

it just sounds like flame or picking at nothing.

[pete]

Not a flame.

When you look for financing, you need specifics. Frankly, if you're trying this at 17 I wish you all the luck in the world. But you do need to get "teenage idiom" out of your proposal and be more specific in what it is you want and what you intend to do.

You'll find a whole section here devoted to business plans. That's the first place to start. And I'd just about bet the word "stuff" does not appear in any of them. Any serious appeal for money will require a business plan. Even if you never use it, it would be a good excercise for you to get a better mental roadmap of where you want to go.

[Bluefalcon]

This post isn't about an appeal for money. I already have ways to buy this real estate and a company it really isn't a problem.

The problem is will my parents be liable. Since I can't go into any contract because I am 17. They have to sign. They won't sign unless they aren't liable if it goes bust, god forbid. I was just wondering. If I made a C-corporation with my parents help sign documents and stuff for me because I am under 18. Then I hired myself as CEO, with my parents signature. And I have to file for Coporate Bankruptcy would my parents lose their assets? I don't mind if I lose my assets. I don't have any, well just a car. Then in 7 years I have normal credit again.

I just don't want my parents to have to pay for my mistakes. They worked there whole life and I don't want them to lose it all on my account. Plus they won't sign for me to make the coporation unless they get a garentee from a lawyer. I have to talk to one anyway. But I was wondering if any one here knew this for a fact it saves money and time for me. I would probably ask a lawyer anyway, but it was ease my mind knowing here one way or another first.