In order for a child to obtain income by owning a "membership with a travel company (club) that produces multilevel income (major amount), I would like to set up an LLC
with the child as a member (perhaps with his father as a LLC member trustee with the child being beneficiary untill legal age) and purchase the Travel membership in the LLC's name.
This way, "The Child," could be accumulating income till he reaches legal age. The LLC would be taxed as a corporation
, basically holding the income etc. However, I was originanlly planing to have the Childs father be the "managing member" in the first place with a 1% interset (or perhaps a bit more say up to 10% interest) and the child basically having the rest of the interest in the trust portion.
I guess the question is "How could the father be in the role of the managiing member and also be the non managing member that represents the trust. AND if he can't, perhaps his mother could then instead take on one of the roles as either the managing member or perhaps the Trustee of the trust to make it possible for the child to be a member.
The Idea would be basically to turn the whole LLC over to the Child when he was legal age, with there being MAJOR funds in the LLC's accounts.
PS: I am the Childs Greandfather and also can't be an LLC member - because of conflicting interests with my own existing memberships with the Travel company mentioned above .