Business With Family: How Do You Do It Right?
Doing business with family, they say, is the easiest, most convenient way to do business. Perhaps those who said this may not have worked with their family in business yet. Much like any other business partnership that you put yourself into, doing business with family comes with its unique set of complications. In fact, engaging in business with family may be a little more stressful at times, that you would be willing to re-consider.
But before you end up messing the family because you’re doing business with them, here are a few questions and the lawyer’s answers on how to do business with family -- the right way.
• Do family and regular employees need to be paid the same?
Business always lawyers advise their clients who work with the family to set their family relations aside. It is illegal to determine their salary based on their close links with the owner. Keep in mind that non-family members who work for you are as valuable as the family you work with. Offer them just compensation, based on the work that they do, what you hired them for and what else they could give to the success of the company.
• How do you handle issues between non-family workers and family workers?
You have to treat everybody exactly the way they should be addressed. Although working with family can make this easier said than done, it is the only way you can deal with issues surrounding family members and non-family members who are working for the business. One rule applies to all. Unless they can follow that, you don’t need such complication in your business.
• How much should family members be paid?
It depends on what they bring into the family business. If their expertise pushes the bounds of companies forward into success, then they should be compensated well. If they do very little work to help improve the business, then you should only pay them as much as they give to the company. Remind yourself that you are doing business and not charity work with family. Thus, everyone gets paid based on what they can offer and what else they give.
• Should I have a contract with family members, especially those concerning employment?
The decision to have a contract will be based on your business interest. For business lawyers, it is important to keep a contract for everyone with whom you are doing business with, ensuring that business interest is protected at all times. After all, it's nice to put everything important into writing or regret everything later.
Doing business with family is both convenient and compbusiness with familylicated. But if you keep these answers in mind, you don’t have to worry one bit. If you’re not sure, consult with a business lawyer. They will know how to help.