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Family Businesses Can Foster Unique Disputes

Operating a successful business requires strong working relationships with your employees and co-owners. When you are managing a family business, however, outside matters can seep into the office, straining productivity and sowing discord.

For a family business, remaining focused on the goal of succeeding is critical. At Lobb & Plewe, our attorneys can help you take measures to ensure the integrity of your business structure even in the face of a family dispute. We have helped numerous clients build solid foundations for their family businesses, and we can assist you as well.

Tensions Can Arise From An Array Of Sources

Family business disputes can develop from a multitude of situations, but there are some preventable issues that are more common than others. These frequently problematic areas include:

  • Succession planning: Deciding which family members will assume control of the business for future generations is crucial, yet many businesses do not formally plan for this occasion.
  • Compensation disagreements: In a family-owned business, nepotism can be frequent. Establishing performance-based compensation is a must for avoiding potential disputes.
  • Financial participation and business involvement: If certain family members are benefiting financially from a business without directly working for it, tensions can develop. Setting clearly defined roles is a wise maneuver.
  • Divorce or separation: A divorce can not only divide a family, it can also create a gulf within your business. Having procedures in place for such an event can ensure that your business continues to run smoothly.

Fortunately, there are several proactive measures that you can take to stymie potential family business disputes. With the help of our firm, you can structure your business in a way that accounts for the common pitfalls of families working together.

We Can Help You Avoid Potential Problems

Let our lawyers help you continue to grow your family business with firm moorings. To schedule a consultation, please call us today at 951-335-0465. You may also send us an email to find out more about how we can help you. For your convenience, we serve clients in California, Nevada, and in other states across the country.