Lend Home Address for Friends' Company
Lend Home Address for Friends' Company
(OP)
A friend co-founded a company with a couple
of his other friends. The company is head-quatered
at Cayman island and has branch offices at both U.S.
and China. The friend lent the address of his house
to the other founders to register the company and
his house address is also used as the address of
the U.S. branch office.
Later the friend decided to quit the entrepreneuar
endeavor and his question is whether he should withdraw
his home address from the company's registration.
What are the liabilities or risks if his home address
is used in the company's registration and various other
company related contracts, activities, ..., etc. ?
Thanks a lot!
Ki
of his other friends. The company is head-quatered
at Cayman island and has branch offices at both U.S.
and China. The friend lent the address of his house
to the other founders to register the company and
his house address is also used as the address of
the U.S. branch office.
Later the friend decided to quit the entrepreneuar
endeavor and his question is whether he should withdraw
his home address from the company's registration.
What are the liabilities or risks if his home address
is used in the company's registration and various other
company related contracts, activities, ..., etc. ?
Thanks a lot!
Ki





RE: Lend Home Address for Friends' Company
RE: Lend Home Address for Friends' Company
I can't imagine any liability issues coming out of this although there may be other legal issues, corporate tax (varies with states), etc.
RE: Lend Home Address for Friends' Company
My friend conducted some software development
work at the address before the company was founded.
Shortly after the company was founded he decided
to quit. I guess he should request cancellation
of his address.
Just wondering if my friend quits now will he
be responsible for the future corporate tax,
corporate debt, ..., etc., just because his address
is used ?
RE: Lend Home Address for Friends' Company
RE: Lend Home Address for Friends' Company
As far as any future tax issues, this is another question I can not answer. However, morally or legally, the address should not continue to be used. At the very least, continued use of this address, in this particular state, may cause more tax liability for the company by way of any corporate tax in his particular state (sound right?).
I would definately get his address off from any company documents, etc to avoid future head aches from the IRS or state tax collectors. Whether there is any tax liability, legally would not matter much to me but the potential for future legal issues/headaches would be enough for me to not use my address.
As far as any debts (other than taxes), I know for sure he would not be liable unless he is named as a partner (if LLC, LLP, etc) or owner of the company.
RE: Lend Home Address for Friends' Company
He should use a companies lawayer and straighten out the company address issue before it becomes a legal problem.
sc