Family Business? - Don't wait to talk about tough issues!
It's a well-known belief that business and family are not a good combination. Most people cannot fathom a disagreement or falling out between family members, much less those family members with whom they work. Therefore, it's not much of a stretch to conceive that many of the important points of negotiation that should go into the formation of a business are either overlooked, or put off for later consideration.
Business attorneys constantly emphasize the importance of addressing/negotiating every aspect and detail of a business relationship prior to commencing operations. There are particular areas that absolutely should not be overlooked or ignored. Depending on the type of entity, one of the most crucial components can be referred to as Partnership Agreements, Shareholder's Agreements or Bylaws. These documents set forth the manner in which the entity shall conduct business in its day-to-day operations. In addition, and possibly more important, these documents also dictate what will happen in the event the business relationship sours, and the members/partners choose to go their separate ways. Failure to reach agreement on these issues at the outset of the family business can take a disastrous toll on the family members' emotions and funds when the business dissolution finally occurs.
If you need assistance in working through these issues, consult your business attorney for assistance. For additional information, contact Wood, Atter & Wolf, P.A., Jacksonville business lawyers.
