I have a couple of questions about starting a family business, a business that I would like my children to run and own as a team once myself and my wife have past (old age and eventually death).
Last tax year ending April 2019 I gave up full time employment and this tax year have started doing some adhoc consultancy and advisory work around business transformation (self employed). I’m currently about to start a short engagement in Spain.
My wife has just qualified as a dietitian and is looking to do consulting work, providing nutrition advice to both businesses and private individuals.
My eldest daughter who is 15 has a Saturday job and is looking to sell her art work.
My youngest daughter (11 years old) has a big following on instagram and YouTube with gaming fans, and has potential of earning income from advertising if her followers carry on increasing. She is also interested in selling merchandise on eBay.
I would like to set up one company of equal shareholding for our 4 family members. As a family we have agreed that we should invest any profits into property within the company which will in turn yield a revenue stream. We will take no personal income or profits within the first 4 years.
I suspect as I get older my activity along with my wife’s (although she is a bit younger than me) will reduce and my children will become the main revenue generators along with the properties we have purchased.
- Can we setup one company which has different revenue generating elements ranging from, consultancy, advertising, property rental and item sales (art & merchandise)?
- I understand that my children can’t become directors until they are 18 but can have an equal shareholding in trust. Do you foresee any complications with us structuring the company this way.
The ultimate goal of setting the company up is a pension for the parents and a long term job for the kids just in case they can’t get employment else where (safety net).
Thanks in advance