Relationships between clients

Relationships describe how two client records relate to each other. A group says these belong together; a relationship says this one owns 60% of that one, from this date.

That distinction matters at return time. Groups organise your work. Relationships record structure.

Where to find it

The Relationships card sits on the Overview tab.

Add a relationship

1. On the Relationships card, click Add relationship.
2. Pick the Relationship type — the picker reads as a sentence, so you're choosing the phrase that completes this client __ that client.
3. Choose the other Client.
4. For ownership relationships, enter an Ownership %.
5. Set Effective from.
6. Add a Note if there's context worth keeping.
7. Save.

Relationship types

Ten types, phrased as sentences:

• is spouse of
• is dependent of
• is owner of
• receives K-1 from
• is officer of
• is trustee of
• is beneficiary of
• is grantor of
• is parent entity of
• is related to

Reading the picker as a sentence prevents the most common mistake, which is recording a relationship backwards. Henderson Holdings LLC is owner of Henderson Operating LLC is unambiguous in a way that a bare "owner" label is not.

is related to is the escape hatch for something real that doesn't fit the other nine.

Ownership percentage

Two types carry a percentage: is owner of and receives K-1 from. The field only appears for those, so you won't be asked for a percentage on a trustee relationship.

Percentages aren't validated against each other — LedgerOS won't stop you recording ownership that totals 120% across several owners. It's a record of what you've been told, not an audit.

Effective from

Every relationship carries a date it started. Ownership changes; a K-1 recipient in one year may not be one the next. Recording the date means the structure you see is dated rather than merely current.

Notes and limits

• Relationships are between two client records. To record a person's role on a client, use a contact instead.
• A relationship doesn't create a group, and joining a group doesn't create relationships. They're independent.
• Relationships don't drive automatic tax calculations. They document structure for the humans reading it.
• There's no limit on how many relationships a client can carry.