If you operate a family-owned business, or are considering starting one up, there are four potentially lethal legal mistakes you should take care to avoid, including:
No employment agreements.? Family members who work together are usually hesitant to confront one another if someone isn?t pulling their weight.? Having an employment agreement for everyone ensures that expectations for job performance are spelled out and what the grounds are for termination.
Mixing family and business finances.? Many family businesses start with loans from various members, and as the business grows, those initial investments need to be protected.? This is the stage when you want to consider setting up your family enterprise as a limited liability company (LLC) or a corporation.? Most small businesses use an LLC structure, which provides liability protection for personal assets and allows for company profits to flow through to owners.
No licenses.? Even if you operate out of your home, you will likely need to obtain a local, state or federal license to operate your family business.? While licenses are generally inexpensive, the fines for not having them can be costly.? You can find out what the requirements are in your area by contacting your city hall or county office.
No succession plan.? Family business feuds can easily occur when there is no succession plan in place.? In addition, legally speaking, if a business has not been incorporated or formed as an LLC, the business dies when its owner does.? If you started a family business to keep it in the family, you need to follow through with a formal succession plan.
If you?re a small or mid-size business owner, call us today to schedule your comprehensive LIFT? (legal, insurance, financial and tax) Foundation Audit.? Normally, this session is $1,250, but if you mention this article and we still have room on our calendar this month, we will waive that fee.
Claudia Bingham graduated from City University of New York, the only law school in the nation that primarily focuses on training lawyers to enter public interest law. After graduation, Claudia served as a law clerk at a small general practice law firm in North Carolina where she primarily worked on small business law and trusts and estate planning. Claudia was admitted to the North Carolina Bar in 2010 and was admitted to the U.S. District Court, Eastern District of North Carolina in 2010. She comes from a long line of entrepreneurs and in July 2010 with the help of her father, also a long time business owner, she opened her own law practice with the goal of holding true to the motto of her law school: Law in the Service of Human Needs. With strong core values of access to justice for all and a sense of community as a backdrop, Claudia has provided pro bono assistance for the North Carolina Legal Aid?s Justice for All Project, Wake County Guardian Ad Litem and Able to Serve, a non-profit organization in Wake County. Claudia believes that the best estate planning process is one that melds her legal expertise with her clients? willingness to share their personal beliefs and dreams. She is devoted to assisting small family owned and operated businesses in the Triangle and because she comes from a long line of business owners, truly understands the demands that many small family owned operations face on a daily basis. She prides herself on being a counseling-oriented attorney who creates customized estate plans designed to meet the specific goals of her clients and her ability to truly listen to her clients and to translate their vision into estate plans that meet their desires and expectations. She appreciates the unique composition of each family and knows firsthand that thoughtful, creative customized planning can maximize both financial security and harmony therein. She loves working with small businesses to provide the legal protection needed to grow without liability. Claudia is fluent in Spanish and resides in Garner, NC with her dog, Darcy.the walking dead Walking Dead Season 3 vampire diaries derek jeter Red Bull Stratos Redbull Stratos steve mcnair
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