A friend wants to open a business in my name. I don’t have to do any of the work, but he just uses my identity on all the paperwork. He and his millionaire friends all do this all the time, and now he wants me to become one of his puppets. Is this actually legal? What kinds of liabilities would I be opening myself up to by agreeing?
Throwaway account, I’m terrified for him to know
What? You haven’t seen enough mobster movies to see how terrible of an idea that is? When the feds come after the business for taxes, money laundering, fraud or any other white collar crime; it’s YOU they will come after. Your name Is on the paperwork. If it’s not the feds it will be civil suits, lawsuits that name you. Yeah, they may be able to add your friend to the suit…but which one of you is a millionaire who can afford a lawyer…and which one of you can’t??? Also. The people at the top of ponzi scheme scams are the untouchable millionaires while the ones below them take the fall.
If it’s a real deal have them put together a proposal and take it to a business/contract lawyer to review. If it’s legit then you’ll want a lawyer regardless. Better to start with one than need one later. Look for one with knowledge for LLCs too.