Choosing the right legal structure for your cross- border family business.
Operating a family business with members based in both the United Kingdom and other countries requires a strategic approach to legal structures. The decision you make can significantly impact the business's operations, management, and tax implications. In this article, we will explore various legal structures and considerations to help you determine which one best suits your cross-border family business needs. Family Partnership A family partnership is a straightforward structure that allows family members from different countries to combine their resources and expertise in running a business together. This structure is suitable for small to medium-sized businesses where family members actively participate in day-to-day operations. The key advantage here is simplicity and shared responsibility. However, it may not provide the same level of liability protection as other structures. Family Limited Liability Company (LLC) A family LLC offers the flexibility of management while providing liability protection. It can include members from different countries, making it a versatile choice. This structure is well-suited for businesses of varying sizes where family members want to limit personal liability while retaining control over management decisions. It strikes a balance between protection and control, making it an attractive option for many cross-border family businesses.
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BY BHAVINI KALARIA Partner Dispute Resolution
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Holding Company Structure For diversified family businesses with
interests in multiple industries and locations, a holding company structure can be highly effective. This arrangement involves a parent company that owns subsidiary companies in different jurisdictions. It allows for centralized
THE LEGAL CORNER MAGAZINE | ISSUE 007 APRIL '24 | PRIVATE CLIENT SPECIAL HB 34
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