Starting a business in South Carolina involves being a smart manager and planner. One of your responsibilities is to decide how your family members will receive the most benefits from your business and protect their assets and liabilities. You might want to incorporate your family members into the work of forming a business.
Choose the legal structure
Choose the right legal structure for your family business is important. Consider the types of protections that your family needs if the business is sued to reclaim debts or pay off damages. You want a structure that allows the business owner and its individual members to receive protection from personal liability in case they are sued.
Form a family LLC
Business owners have access to various methods of including their family members in the development of their businesses. One type of business formation is a family limited liability company, or LLC, with owners who are known as members. A senior member serves as the business’s manager and creates an agreement that outlines the rights of each member in regard to the ownership and transfer of assets.
The family members are allowed to become shareholders and manage their assets in the business. During estate planning, a family LLC allows you to control your assets and reduce estate taxes that are owed on an inheritance.
Decide how to best manage your family’s assets
Including family in a business is recommended to protect the assets of individuals and the family unit as a whole. You’ll want to divide income among different members and make the process of estate planning easier. Make sure that your family is included in every step of the decision-making process.