Some of the best known businesses in America started off as family owned businesses. So, what makes the difference between those that continue and those that close with the passing of the founder? Ensuring that a family business transitions properly from one generation to another takes sound business planning. Efficient planning for the future is essential to preserving a company.
Tulane University is trying to help family businesses in this all important planning phase. Third generation Olan Mills Portrait Studio and Peerless Woolen Mill owner Henry Hutcheson will be the featured speaker at the Tulane Family Business Center on January 18, 2013. One issue that he will address is navigating family disputes that can threaten the survival of a business. Tulane's Business Center often provides services on management and planning questions that can come up in family owned business. The hope is to give these business owners the skills that will help them successfully navigate these family disputes so that the businesses can survive.
For many business owners, a one-day lecture will not be enough to handle all their business questions. A family business may require restructuring to ensure that the business will survive future challenges. A business can be structured to limit personal liability by creating a separate legal entity from the individual family members that own and operate the company.
There are a variety of do-it-yourself forms that can be purchased by consumers. However, none of those forms can speak to the unique issues that may be present in your family business. Whether it is a choice between a corporation or a limited liability company, getting the right information can ensure that the company is properly structured for today and the future to come.
Source: www.nola.com, "Tulane center planning workshop on generational change in family businesses," Mark Waller, Dec. 22, 2012