Hello all. I’m not looking for specific legal advice here, just curious if anyone has done the same thing or has any thoughts on the matter…
As part of our later life planning my partner and I are considering adding our grown up children to our LLP. They would be ‘normal’ LLP members with no current investment or stake in the business and would not be eligible for any share of the profits or paid any salary.
Essentially they would be sleeping partners until the point that either my partner or I die in which case they could take over the running of the business or formally wind it up as ‘designated’ members. This would be detailed in our formal LLP agreement.
Our thinking is that as existing partners in the LLP, the process of succession or closure will be so much easier for them.
Am I missing any obvious accounting pitfalls or falling foul of any LLP regulations? Any thoughts?