Hey guys, just wondering how acceptable it is for an adult son (or daughter) to be a director of a mostly one person contractor limited company?
I've been helping my Dad for many years now in a mainly organisational and advisory role but haven't had any official role in the company so far. He's mostly a one man band with a little help from my Mum. But increasingly he's trying to move from day rate work to potentially a writing and speaking career. It's going to need a functional and managed website, social media presence and a lot of editing, guidance and support to get there.
I understand he could pay a salary or even an hourly wage, but it sounds complicated to work out hourly rates and keep records for every minute worked. For this much work, would it be better to be appointed a director and/or receive a small amount of shares instead? I am a director of my own company already so i'm aware of the responsibilities.
There's a lot of posts on the forum about making the spouse a director. Does the same apply for adult children who genuinely assist the business? Thanks.
I've been helping my Dad for many years now in a mainly organisational and advisory role but haven't had any official role in the company so far. He's mostly a one man band with a little help from my Mum. But increasingly he's trying to move from day rate work to potentially a writing and speaking career. It's going to need a functional and managed website, social media presence and a lot of editing, guidance and support to get there.
I understand he could pay a salary or even an hourly wage, but it sounds complicated to work out hourly rates and keep records for every minute worked. For this much work, would it be better to be appointed a director and/or receive a small amount of shares instead? I am a director of my own company already so i'm aware of the responsibilities.
There's a lot of posts on the forum about making the spouse a director. Does the same apply for adult children who genuinely assist the business? Thanks.
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