My husband, my sister-in-law and I started an LLC. My question is, my sister-in-law met this guy who is somewhat questionable, but she plans to marry him, what do we need to do to protect our interest so that he has no claim in the business now and in the future?
-- Anonymous
A.
Assuming your sister-in-law acquired her interest as a single woman, the ownership interest she holds in the LLC should be her separate property even after she gets married to Mr. Wonderful. Nevertheless, it is possible that he could still try to meddle with the business and/or later claim that your sister-in-law transmuted her membership interest into their community or jointly property. Among the best ways to try to prevent this from happening would be:
Suggest to her that she should have a pre-marital agreement that clearly states her interest in the LLC is her separate property over which she has full management and control;
Make sure that the LLC's operating agreement provides adequate control to a majority of the members (presumably you and your husband) so that you can override any desires she may have to let her husband-to-be get involved with the business; and
Have a buy-sell agreement that would prevent her from transferring any interest to him without first giving you two the right to buy her out.
