More than one company has split at the seams because there was no agreement on what kind and level of effort was required of family members who wanted to enjoy the business’ benefits. Without that agreement, the idea emerged – and perhaps having a token title – was the only criterion for taking home money or enjoying perquisites.
The moral of family members and non-family employees alike plummets at the sight of a family member putting in 12 hours and taking home the same or better compensation as another employee who puts in 12 hours a day. It may take a hard nose to do it, but the family has to set forth in clear terms what inputs are required to be eligible for the outputs.
This is one way you can protect your business and run it like a business.
A Business Consultant can help you recognize and address the many challenges, problems and issues that trouble you concerning running your business and provide options to help you resolve issues.
Consult an Attorney to help you with legal advice and a CPA for tax advice. Their fees are well worth the investment.
C Bruce Matthews, CTEP, CWM
TruOptions Business Consultants, LLC