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Adding Son to Family Business Partnership

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  • 05-01-2018 11:06pm
    #1
    Aaron78
    Registered Users Posts: 12 ✭


    I'm hoping some one here can help me

    My parents have a small family run transport company that I will be taking over eventually
    My father has retired, my mother (aged 66) currently works with me in the business and we have 4 employees.
    The business was set up as a partnership. It has now been decided that I will be a named partner. What are the steps involved in doing this? What paper work is required?

    Currently everything is in my parents name. There is only one bank account for both personal and business.

    Ideally I want to set up the business where it trades under a business name and all current vehicles and licences can be under this name and have a separate business bank account.


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    #2
    antoinolachtnai
    Registered Users Posts: 9,774 ✭✭✭antoinolachtnai


    The first thing you should do is visit your accountant. If you don't have one, get one who is experienced with family businesses. What you are doing is a very significant transaction and one of the most important ones.

    A partnership is not really a suitable format for an established transport business. The accountant will advise on restructuring as a limited company.

    There are important taxation issues to be considered in relation to your parents' retirement.

    You also need to consider how the governance (basically how major decisions about the business are made). There needs to be clarity as to who is actually running the business.

    As you suspect, the bookkeeping arrangements need to be revisited by the sounds of things. You have the right idea and you can sort this out as you restructure.

    Good luck with this transaction.


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