Zoppi & Co Advises Business Owner On Employing Family Members

Client

A successful business owner approached Zoppi & Co seeking to bring family members into the business. The client wanted to use their children's valuable skills while creating a tax-efficient structure for profit distribution and company money extraction.

The Challenge

The client needed a legally compliant framework that would allow family members to contribute to the business operations while optimising the tax implications of their involvement.

Our Solution

Zoppi & Co implemented a comprehensive employment and shareholding structure:

• Service Contracts: We established formal service agreements for family members to evidence their obligations, structuring their roles as either employees or consultants based on their specific contributions.
• Expense Management: Family members were given the ability to claim legitimate business costs through the company.
• Alphabet Share Structure: We created and issued different classes of shares (alphabet shares), enabling directors to distribute varying dividend amounts to different shareholders at their discretion.

The Result

The client successfully integrated family members into the business with a clear legal framework that maximised tax efficiency while ensuring all arrangements remained compliant with employment and company law.

"This was a straightforward matter that required careful attention to both employment law and corporate structuring. It's always satisfying to help a growing business create the right framework for bringing family on board while enabling tax efficiency." - Malcolm Zoppi, Solicitor