Small & Family Businesses
A family business is a company owned, controlled, and operated by members of one or several families. Many companies that are now publicly held were founded as family businesses. Many family businesses have non-family members as employees, but, particularly in smaller companies, the top positions are often allocated to family members.
Family participation in a business can strengthen the business because family members are very loyal and dedicated to the family enterprise. However managing a family business, and particularly succession planning, can present some unique problems. Often family interests conflict with business interests, for example hiring a family member who is less competent than a non-family member or keeping an underperforming family member in a position when their performance is hurting the company.
Small and family owned businesses are the heart of our economy. According to government statisitcs, in the United States there are 16.4 million non-farm, sole proprietorships, 1.6 million partnerships, and 4.5 million corporations in the United States -- a total of 22.5 million independent enterprises. Ninety-nine percent of all independent enterprises in the country employ fewer than 500 people. These small enterprises account for 52 percent of all U.S. workers. Some 19.6 million Americans work for companies employing fewer than 20 workers, 18.4 million work for firms employing between 20 and 99 workers, and 14.6 million work for firms with 100 to 499 workers. By contrast, 47.7 million Americans work for firms with 500 or more employees. These businesses face greater challenges than their Fortune 500 competitors. The issues range from minimum wage requirements, sourcing capital investments, emminent domain and government re-zoning, retaining key personnel, internet competiton, cash flow, outsourcing overseas, and government regulation and taxes.
How We Serve Our Clients
Our attorneys are experienced in working with small and family businesses in all industries; helping them navigate through the unique issues and challenges they present. Working closely with you and your family, we can help assure that not only your business thrives but more importantly, the family relationships remain strong and formidable.
