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And they may be laying the groundwork for future problems regarding control of the business, legal accountability and how to pass along the company when it is time to retire or an untimely death occurs. However you start your business, one of the first major decisions you must make is how to structure it. There are six basic possibilities: sole proprietorship; general partnership; limited partnership; closed (Subchapter S) corporation; open corporation; and limited liability corporation. What follows is a brief overview of each one, along with some of the advantages and disadvantages.

My conclusion: For better or worse, people who work for family-owned business aren't like most people. The Nature of Families Family-owned businesses come with unique challenges, because relationships are so intertwined and emotions run so deep. People define themselves most often by their work and by their family. Merge these together and you're bound to have potent circumstances. A story from European history illustrates this point. During the Dark Ages, the feudal economy placed primary emphasis on the family and the means of maintaining farms, castles and towns.

When crating a plan for succession, owners should consider such items as their economic needs and those of their family, whether an adequate successor is available for management of the company, the future prospects of the business and when they are willing to transfer control of the business. Depending upon the specific circumstances, a number of techniques may be available. This book will consider the challenges that family-owned businesses face when making the critical transition from the founding generation to those following.

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