Unofficial owner?

[Pepper]

I recently bought into a business (30%) this past January and only have a written agreement between my partner and I to show for it. So does this mean that I am not officially recognized (as far as the government is concerned) as part of ownership until my 2014 taxes are filed next year?

[Freelancier]

You're recognized as an owner from the moment you accepted partnership shares. If your business has a problem with the government, you may now on the hook as well. What's going on?

[Kreater]

I recently bought into a business (30%) this past January and only have a written agreement between my partner and I to show for it. So does this mean that I am not officially recognized (as far as the government is concerned) as part of ownership until my 2014 taxes are filed next year?
Get it in writing, get some copies, and also get a signature or more from witnesses. This will secure your 30% ownership legally.

The government doesn't care about your partial ownership of the business. The company is responsible for 100% liability, from the perspective of the government. So your business partners hypothetically could dump all responsibility onto your shoulders if you're not careful.

Who is responsible for the budget and paying taxes??? That is the person who is responsible to the government.

[Freelancier]

The company is responsible for 100% liability, from the perspective of the government.
This is not true. If the company is a partnership, you are liable for whatever portion of the problem related to your ownership position. If the company failed to pay taxes, the government will go after the owners of any closely-held corporation or LLC to get the money they are owed. The corporate liability shield only goes so far and by mistake an owner could screw it up and leave you vulnerable even if you did everything perfect that was within your control.

You might not even have been an owner at the time of the mistake, but the minute you buy in, you are an owner and responsible for all mistakes, past and present. In fact, a case can be easily made that the price you paid to buy in was reduced because of the issues and expected liability.

[Kreater]

This is not true. If the company is a partnership, you are liable for whatever portion of the problem related to your ownership position. If the company failed to pay taxes, the government will go after the owners of any closely-held corporation or LLC to get the money they are owed. The corporate liability shield only goes so far and by mistake an owner could screw it up and leave you vulnerable even if you did everything perfect that was within your control.

You might not even have been an owner at the time of the mistake, but the minute you buy in, you are an owner and responsible for all mistakes, past and present. In fact, a case can be easily made that the price you paid to buy in was reduced because of the issues and expected liability.
Well you can pass the ball around however you want to.

My advice is not to be the one holding it, unless you also control your budget. Do you control the budget? If yes, then is that control worth the 30% stake of ownership?

Because whoever controls the budget has a lot of responsibility. And that includes paying out for taxes.