The Brave and the Bold: Blogs About Business Attorneys

Working with a spouse or a close family member in a business can have many unexpected benefits. It can also be an even complicated venture that will put any relationship to test. Family businesses are often frowned upon – with many debates surrounding whether it is the most advisable idea. Nevertheless, there are many spouses and family members who have learned how to successfully navigate the terrain and maintain great success. 

If you are considering going into business with your spouse or a family member, here are a few tips to help you create a solid foundation for your business all while maintaining your personal relationship. 

First things first, put everything into writing 

While this seems like an obvious step, many people tend to overlook it and dive in head first into a business without a properly structured arrangement. It's important to treat the partnership as you would any other business and put together an agreement. Talk to a lawyer about creating an agreement on ownership percentage and a legally binding agreement on how to share assets in the event you want to dissolve the partnership. More importantly, outline the legal responsibilities of each partner and whether the business is a partnership or a corporation. Ownership agreements will not only help protect the business but also protect your personal relationship as well. 

Don't bring your relationship into the office 

The best thing you can do for your business is to keep your personal relationship and professional relationship separate. Outside of work, you can maintain a personal relationship but this shouldn't be the case in the office. There is always the risk that one partner might have more leeway to do as they please, and the other partner might have little leverage over them due to their personal relationship. Separating your personal relationship in a business setting makes it possible to hold each other accountable for your assigned areas in the business. 

Agree on who is going to take lead on set projects 

One of the greatest challenges in a spouse/family owned business is delegating ideas, projects, and responsibilities. If you are working on the same project, it's important to discuss clear roles to eliminate the time it takes to agree on a single idea. Discuss who is going to do what job and also agree on how to handle eventualities. It is also crucial to decide on roles based on each person's strengths and interests to guarantee a successful partnership.