Bringing family into the Business.
Let’s say you have 4 adult children and would like to give them 20% each of the family business while retaining 20% yourself (or any variation thereof) – this is a lot easier in a Company structure as shares can be easily transferred etc.
For a sole trader to do this, if they did not want to set up a company, the only option would be to cease as a sole trader and commence a new Partnership arrangement – while this can be done the Company route is much more practical and is the option used in the vast majority of cases.
Tomorrow we look at rewarding a key employee.
This series of articles are for illustrative purposes only and do not constitute professional advice. To get in touch please e-mail [email protected]