Like any business, structuring from the start is important for family firms. Whilst there is a lot going on at the outset and people tend to put off the need for detailed agreements, care needs to be exercised in terms of legal obligations, roles of directors and shareholders and asset protection too.
Simple documents and agreements at the outset can avoid problems down the line too and it helps to clarify plans at the start.
A simple shareholders agreement would be a good place to start...
Family businesses deserve the place they have in the hearts and minds of most Americans. In most cases, they embody the best of the American dream. But, like all dreams, they can become a nightmare when communication fails or family members become motivated primarily by fear or self-interest.