Business Ownership Guide
Record and manage your company shares, partnership interests, and other business ownership stakes as part of your estate plan.
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What is Business Ownership?
Business ownership refers to shares, membership interests, partnership stakes, or other equity you hold in a company or business entity. These assets can represent a significant portion of your estate and often have specific legal requirements around transfer and succession. Properly documenting them is essential for estate planning.
Types of Business Ownership
Company Shares
Ordinary, preference, or other classes of shares in a limited company. These come in country-specific forms such as UK ordinary shares, US common stock, or Australian ordinary shares, each with different rights and tax treatment.
Partnership Interests
A stake in a general or limited partnership, including UK LLP memberships. Partnership interests typically involve a share of profits, losses, and capital contributions, and may be governed by a partnership deed or operating agreement.
LLC/Membership Interests
Membership units in a limited liability company (LLC) or unit trust. These represent your ownership percentage and entitlement to distributions, typically governed by an operating agreement.
Convertible Instruments
Convertible notes, SAFEs, and profit-sharing arrangements that may convert to equity under certain conditions. These instruments have specific terms around conversion triggers, valuation caps, and maturity dates.
Key Terminology
Understanding these terms will help you manage your business ownership records effectively.
Share Class
Different categories of shares (e.g. Class A, Class B, Ordinary, Preference) that carry different rights to voting, dividends, and capital distribution.
Voting Rights
Your right to vote on company decisions such as electing directors or approving major transactions. Some share classes carry enhanced, limited, or no voting rights.
Dividend Rights
Your entitlement to receive a share of the company’s distributable profits. Rights may be fixed (preference shares), variable, or at the directors’ discretion.
Pre-emption Rights
A provision requiring existing shareholders to be offered shares first before they can be sold to outside parties, often found in shareholders’ agreements.
Transfer Restrictions
Limitations on your ability to sell, gift, or bequeath your ownership stake. These may include board approval requirements, lock-up periods, or right of first refusal.
Capital Contribution
The total amount of money or assets you have invested in a partnership or LLC. This determines your initial ownership percentage and entitlement to returns.
How to Add Business Ownership
Recording your business ownership ensures these assets are included in your estate plan and can be properly managed by your executors.
- Go to Asset Management → Business Asset Tracker → Ownership
- Click "Add Ownership Stake"
- Enter the company name and select the ownership type
- Add share details or ownership percentage as applicable
- Enter the current estimated value and currency
- Note any voting or dividend rights
- Record transfer restrictions if applicable
- Upload your share certificate, shareholders’ agreement, or partnership deed
- Save the record to your portfolio
Document Checklist
Keep these documents accessible for each business ownership stake:
- Share certificate or membership certificate
- Shareholders’ agreement or partnership deed
- Articles of association or operating agreement
- Latest valuation report or audited accounts
- Any convertible instrument documentation (SAFE, convertible note)
Upload Documents
Transfer Restrictions & Will Planning
Business ownership stakes often have restrictions that affect how they can be bequeathed. Recording these details helps your executors understand what steps may be needed to transfer your ownership.
- Shareholders’ agreements may require remaining shareholders’ consent for transfers
- Pre-emption rights may give existing shareholders first option to buy your stake
- Partnership deeds may specify what happens to a partner’s interest on death
- Some ownership types cannot be freely transferred without board approval
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Frequently Asked Questions
Where should I record business ownership vs equity compensation?
Use Business Ownership for shares or interests you hold in a company as an investor or co-founder. Use Equity Compensation for grants you received as an employee (stock options, RSUs, ESPP shares). If you founded a company and also receive employee equity grants, record them separately in the appropriate category.
What if my ownership type isn’t listed?
The system supports many ownership types across multiple jurisdictions. If your specific type isn’t available, select the closest equivalent and describe the details in the notes field. Country-specific types are shown when you select the country of incorporation.
Should I link to an existing business entity?
If you manage the business through the Business Entities section, linking your ownership record to it keeps your records connected. This is optional. You can record ownership in any company, whether or not you manage it as a business entity.
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