Can You Form an LLC with Bigfoot as Your Silent Partner?

Imagine signing a partnership agreement with the elusive creature that leaves behind only footprints and half‑eaten pizza. It’s a funny mental image, but it also raises a surprisingly legitimate question: Can you legally form an LLC with Bigfoot as your silent partner? Let’s dive into the nitty‑gritty of business law, tax codes, and a touch of folklore to find out.

1. What Is an LLC?

An LLC, or Limited Liability Company, is a hybrid business structure that blends the flexibility of a partnership with the liability protection of a corporation. The key perks:

• Limited Liability: Personal assets are shielded from business debts.
• Simplicity: Fewer formalities than a corporation.
• Pass‑Through Taxation: Income is taxed once at the member level.

But what about members? Who can be a member?

1.1 Who Can Be an LLC Member?

The Internal Revenue Service (IRS) and most state statutes allow the following as LLC members:

1. Individuals (natural persons)
2. Other LLCs or corporations
3. Foreign entities (with proper registration)
4. Other legal persons, like trusts or estates

The rule is clear: Only legal persons can be members. That means no animals, plants, or mythical creatures—unless they have a legal personality granted by law.

2. Bigfoot’s Legal Status

Bigfoot, also known as Sasquatch, is a mythical creature. As such, it has no recognized legal personality. The U.S. Code and state statutes do not grant legal standing to entities that are not recognized as persons or corporations.

Let’s break it down:

Even if you could prove Bigfoot’s existence, the law would still treat it as an unincorporated entity—lacking the necessary legal framework to be a member.

3. The Silent Partner Concept

A silent partner is a member who invests capital but does not participate in day‑to‑day management. In LLC terms, this is simply a member with a limited role. The key requirement remains: the partner must be a legal person.

So, can you have Bigfoot as a silent partner? Technically no. However, let’s explore a creative workaround.

3.1 The “Sasquatch Trust” Idea

If you could establish a trust that holds Bigfoot’s “interest,” the trust itself could be a member. Trusts are legal entities, so they can own LLC interests. The trust’s beneficiary could be a fictional or real person representing Bigfoot.

Steps to create a Sasquatch Trust (hypothetically):

1. Draft a trust agreement naming the beneficiary as “Sasquatch.”
2. Register the trust with your state’s Department of Revenue.
3. Transfer LLC membership interest to the trust.
4. Appoint a trustee (you or a neutral third party) to manage the trust’s responsibilities.

While this satisfies legal personhood, it remains a tongue‑in‑cheek exercise—Bigfoot still doesn’t have any actual control or presence.

4. Tax Implications

Assuming you somehow get Bigfoot’s trust as a member, the LLC would still follow standard tax rules:

• Pass‑Through: Profits and losses pass to the trust’s tax return.
• Self‑Employment Tax: If Bigfoot (via the trust) is actively involved, it may be subject to SE tax.
• State Taxes: Some states impose additional fees for LLCs with foreign members.

Because Bigfoot’s trust is a foreign entity, you might need to file Form 5472 and comply with the Foreign Investment in Real Property Tax Act (FIRPTA) if the LLC owns real estate.

4.1 Example: Profit Distribution Table

All profits would flow through the LLC to your personal tax return and the trust’s tax filings.

5. Practical Considerations

Even if you could get Bigfoot on board, there are practical hurdles:

1. Evidence: No credible evidence of Bigfoot’s existence.
2. Enforcement: How would you enforce a contract if Bigfoot never appears?
3. Liability: The LLC’s liability remains with the members who can be held accountable.
4. Credibility: Investors may question your seriousness.

Bottom line: The idea is more fun than functional. It’s a great story for a blog post, but not a viable business strategy.

6. Meme Video Break

Because we’re talking about a legendary creature, here’s a meme video that captures the spirit of our discussion:

7. Conclusion

In short, you cannot form an LLC with Bigfoot as a silent partner in the literal sense. The law requires members to be legal persons, and Bigfoot does not meet that criterion. While creative legal structures like trusts could theoretically give a “Bigfoot” an LLC stake, the exercise remains symbolic and humorous rather than practical.

So next time you hear a thud in the woods, remember: the only legal partnership that’s guaranteed to exist is the one you create with yourself. Keep your footprints on paper, not in forest floor.