reply to post by John_Rodger_Cornman
Well, your scenario is intersting, but not complete, we need to know if Bob is leaveing anything in the business accounts to run the company, what
Bobs income and Paid out salary is, does he pay his taxes correctly etc
I recently opened an LLC. I could have chosen to make my company a sole proprietorship(one owner, who is reaponsible for the business regardless)
But I didnt I chose to become an LLC, because if anythng should ever happen(goddess forbid) and my company get sued, I would not lose my home, and all
of my personal property, the only property affected would be the property owned by the business. Since my company is based on property I own
personally, about all they could take is the building,a and some machinery, and the building would have to be physically removed from the property.
As for "Bob" taking all of the profit from his product sales, of course its legal, he owns the company, anything that comes into the company in the
way of profit can be distributed any way he sees fit, as long as his taxes are paid correctly etc.
Ive opened several businesses, none of them have been in the same form, some were corporations, some sole proprietorships, some LLC's it all depends
on the type of business and what you intend to do with it.
An LLC is only a form of protection for the owners personal belongings in the event of being sued, there is no legal obligation to pay anyone anything
who is not associated with the LLC, except for taxes that is.
I am the sole owner of my LLC, and sole board member, and as a result-ALL profits after expenses will be paid to ME, and no one else, as I have no
employees. And yes its legal.