Just my opinion Don, But, I would remove the lapbelts and tank padding BEFORE any inspection!
It'll be far more headache(s) than it's worth!

Later, after you're registered and titled, then you can create a reasonable seat arrangement for the kids or a passenger.

I don't want to discourage you, I just see that as an added hurdle / hassle for an inspector to give an approval on and would only hinder your effort(s).