You must first confirm that your daughter is of legal age to join the company as a stakeholder. The minimum age to own shares is typically 18 years old. If your daughter is under 18, you might need to set up a trust or a guardianship arrangement to keep the shares until she reaches the required age.
Second, think about the financial effects of adding your daughter as a stakeholder. You might have to pay gift tax depending on how many shares you plan to give her. The yearly gift tax exclusion in the US is set at $15,000 per person for 2021. This means that you can give your daughter shares valued up to $15,000 without having to pay gift tax. If you go over this limit, you could have to submit a gift tax return.
Thirdly, you should be aware that adding your daughter as a shareholder gives her a voice in how the business is run. This has potential for both good and bad. On the one hand, having a family member as a stakeholder might give the business security and a long-term commitment. On the other side, if there are divergent views on how the business should be run, this could potentially result in disagreements and conflicts.
Along with adding your daughter as a stakeholder, you can think about forming a family LLC. This is a legal structure that enables family members to combine their efforts and start a business. The liability protection that an LLC offers its members is one of its key advantages. This means that any debts or legal actions brought against the firm are not personally owed by the individual members.
In conclusion, it is conceivable to make your daughter a stakeholder in your business, but you must carefully evaluate the financial and legal ramifications. If you choose to move forward with this choice, it is advised that you consult a financial or legal expert to make sure you are making it in the most practical and efficient way.