Business Structuring

[dcarlos]

Not sure this was ever discussed here, couldn’t find anything on a brief search. If one were to keep the business ownership unaffected if for any future family split or other issues that might happen, is there a structure that is recommended to have to prevent such situation so that the hard work is majorly not wasted.

[Grouchy]

Look at establishing an LLC. The key is the operating agreement. It can restrict family involvement and stuff. But if you mess it up then a whold bunch of worms can crawl out of the can.

[jp1amper]

Originally Posted by dcarlos

Not sure this was ever discussed here, couldn’t find anything on a brief search. If one were to keep the business ownership unaffected if for any future family split or other issues that might happen, is there a structure that is recommended to have to prevent such situation so that the hard work is majorly not wasted.

An LLC can be effective but it’s not bulletproof. There are also other options such as trusts and buy/sell agreements. I would consult an attorney for guidance. If you spend a few dollars on the front end it will likely save you ten fold later. Ownership disputes can easily destroy a company.

[Fizley]

As JP advises contact your attorney and I also recommend discussing with your business partners too.

If you have sizeable lines of credit and or surety lines probably should have the discussion with them also.

[sketchball82]

Originally Posted by dcarlos

Not sure this was ever discussed here, couldn’t find anything on a brief search. If one were to keep the business ownership unaffected if for any future family split or other issues that might happen, is there a structure that is recommended to have to prevent such situation so that the hard work is majorly not wasted.

IP attorney here. But I do some business law as well.

If by "family splits" you mean divorce or death, what you're looking to do is usually solved via estate planning and prenuptial agreements. A chosen business structure is largely irrelevant to my knowledge. Business structure controls more the taxes and operations, not division during divorce or inheritance.