Common Family Business Legal Mistakes
Starting a family business can be one of the most exciting and profitable business ventures. When a family business is well managed, it can be successful and provide a steady stream of revenue over several generations. However, common errors in family businesses may harm the overall success of the business. By contracting a business lawyer, the risk of legal oversight lessens and provides peace of mind to a family.
Four Main Family Business Mistakes
Running a business requires extensive paperwork and legal proceedings in order to distinguish tax exemptions and liability. Most often, family businesses register as limited liability companies (LLCs) in order to retain earnings and lessen liability. However, there are several other legal matters that could potentially damage a family business, including the following:
- Mixing family and business finances
- Failing to mandate employee agreements
- Failure to procure a license
- Lack of succession plan
Regardless of the damage that these common mistakes may cause on the business’s reputation and success, serious legal and financial consequences may ensue for all family members involved. Without the proper legal care, liability for family business may fall on all individuals that aided financially or physically.
Contact an Illinois Family Business Lawyer
At Peck Ritchey, LLC, we work closely with family businesses – from the initial stages of formation and throughout other matters once the business is established and prosperous. If you are starting a business and would like the assistance of an experienced family business attorney to ensure the financial and legal safety of your business, contact (855) 328-5787 to learn more.