Family owned businesses represent approximately 90 percent of all US businesses as of 2016. They contribute to over half of the gross national product and created half of the jobs in the country. Owning a family business can bring great strength, but it can also lead to complex intrafamily conflict that may result in the need for legal advice.
By having their own name on the door, owners feel a sense of pride and responsibility to offer quality products and services, and to maximize their businesses performance. Family members receive training and knowledge about the business early on which can lead to streamlined business management. Family businesses are usually connected under a structure of similar values and common ethics. They are also more likely to have an established sense of identity and commitment to a common purpose.
However, despite these strengths, family owned businesses face a multitude of difficulties. Organizational issues related to hierarchy, authority and responsibility can create major conflicts. Family disagreements from outside the business can overflow into the business. Lack of communication, power struggles and differences in work ethic among family members add another layer to normal business decisions. Questions of succession, equity and inheritance can cause problems when not all children are equally capable or committed to the business. For spouses who are headed towards divorce, the division of a family business adds an extra level of complexity to an already stressful event.
As a business owner or operator, you need someone who can understand the intricacies and complexities of a family-owned business, and can apply the law to achieve the best results. Someone you can trust to provide you with business and legal advice in the long-term.
With years of business law experience, the Law Office of Michael Golburgh is the legal team that you need. Get to know us before you need us. Our office provides a free, in-person, initial business review for small business owners throughout Maryland.*
Contact the office today for more information.
*Restrictions may apply. Available only to new clients of the Law Office of Michael Golburgh. Contact the office at 301-305-3987 for specific details and requirements.