Minor Llc Ownership Rules

Summary

Minors can be members of an LLC in Illinois, but they cannot be legally bound by contracts. Guardians must manage their interests and agree to profit distribution terms. Profit distribution can be based on work contributions if stated in the operating agreement and agreed upon by guardians. Ensure all consents are documented properly. Consult a business attorney for detailed guidance.

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So, if I have the people who work harder get *%, the people who work less get *%, if it is stated in a contract AND both the minor and guardian agrees to it?
In Illinois, profit distribution within an LLC can be based on work contributions if stated in the operating agreement. However, since minors cannot be legally bound by contracts, their guardians must agree on their behalf. Ensure that the guardians' consent is documented properly in the agreement.
Would you like more details on how to draft this agreement?
So can I do this if it's stated in the operating agreement and signed by both parties?
Yes, you can state profit distribution based on work contributions in the operating agreement. However, since minors cannot be legally bound by contracts, their guardians must sign and agree on their behalf. Ensure all guardians' consents are properly documented in the agreement.
Would you like more details on drafting this agreement?