Family Business Values: The Key To Your Success

 

Posting by Geoffrey D. Brown, CPA

Research has shown that family businesses are more resilient than non-family firms and often weather economic turmoil better than their counterparts. An oft-cited reason for this phenomenon is that family businesses are better able to take a long-term perspective, focusing on the benefits and the legacy for the next generation. There is another important factor that affects longevity: strongly-held family business values.

For any business, a strong sense of corporate values and a well-defined mission […]

January 6, 2014 Family Owned Businesses Read more...

Working with Your Family Business Accountant

Posting by Geoffrey D. Brown, CPA, Principal

Embedded (n): to incorporate or contain as an essential part or characteristic.

The Family Firm Institute recently published a fascinating study that looked at the relationship between family businesses and their accountants. How should a family business interact with its accountant? Many people (especially accountants) would assume that an accountant has an important role to play in the success of a family-owned enterprise.

It turns out that assumption is correct, but not in every circumstance. […]

December 12, 2013 Accounting, Family Owned Businesses Read more...

Considerations for a Family Business Franchise

Posting by Geoffrey D. Brown, CPA

There are many reasons to start a family business. Sometimes it’s just to provide a forum for family members to work together no matter what the product or service is. In the case of a franchise, there are some compelling arguments for a family to opt for this type of business model.

What is a franchise? A franchise is the agreement or license between two legally independent parties which gives:

A person (franchisee) or group […]

October 30, 2013 Accounting, Family Owned Businesses Read more...

Growing Mervis Diamonds as I Stand on the Shoulders of Giants

In standard cocktail party conversation, people ask me repeatedly the same question: “What’s it like working with your family? I could never do it!” They continue to tell me that it’s an honorable thing to do, and give it the same sort of admiration that one would confer to a shoemaker who learned his craft from his father and the trade goes back generations in the family. The general notion I hear is that working with your family is […]

October 16, 2013 Accounting, Family Owned Businesses Read more...

Premarital Agreements: Protecting Family-Owned Business Assets

Posting by Geoffrey D. Brown, CPA, Principal

Last week, I had the pleasure of facilitating a webinar with Linda Ravdin, a knowledgeable family law attorney from law firm Pasternak & Fidis. While divorce is always a difficult subject, it can become particularly troublesome when there are concerns about protecting family-owned business assets. Through this webinar, Linda shared a number of insights and strategies that business owners can use to protect their business assets in the case of a divorce.

Properly protecting […]

October 7, 2013 Family Owned Businesses, Wealth Management Read more...

Pros and Cons When Your Family Name is the Brand Name

Posting by Joel C. Susco, CPA

For a family business, it’s not unusual to put the family name as part of, or the entire, brand name. A surname can serve as the trademark, or brand, if it identifies – and distinguishes – the source of the product or service; but it also must not infringe on an existing user’s mark. There are many positives and negatives to consider when naming your family business, changing the firm’s name, or trying to […]

September 24, 2013 Family Owned Businesses Read more...

How Family Business Advisors Can Help Communicate Difficult Topics

Posting by Geoffrey D. Brown, CPA

Family business leaders have many responsibilities and roles. These often cross lines between business matters and personal family concerns, and therefore cover more topics of a sensitive nature than just one or the other. This is more than one person could or should typically handle, especially when that person is responsible for the overall business. That’s where family business advisors – typically a mix of professionals including a certified public accountant, an attorney, a […]

September 18, 2013 Accounting, Family Owned Businesses, Human Resources Read more...

SMALL BUSINESS TAX LESSONS FROM THE IRS LETTERS

Kelly Lopez, CPA

In its latest effort to boost compliance, the IRS has sent letters to approximately 20,000 small business owners requesting additional information regarding potentially underreported income. Essentially, the IRS is checking to make sure that you have reported and paid tax on all cash transactions. The IRS letters are ominously titled “Notification of Possible Income Underreporting.”

While there have been some comments that these letters imply assessments of additional tax or penalties, the IRS states that these letters do […]

August 29, 2013 Accounting, Family Owned Businesses, Tax Read more...

Estate Tax, Inheritance Tax, and Their Roles in Family Business Succession

Posting by Geoffrey D. Brown, CPA

Whether called an estate tax, an inheritance tax, or the earthier “death tax,” the taxes imposed upon the estate left behind after a family business owner passes can be a most unwelcome, untimely, and unplanned for surprise. As we so often advise family businesses, ignoring the mortality of the owner by not planning how the business will carry on after his or her exit – be it voluntarily through retirement, or perhaps by an […]

August 7, 2013 Family Owned Businesses, Tax Read more...

Family Business Communication Insights: Honest Conversations for Effective Transitions

Posting by Geoffrey D. Brown, CPA

Last week, I had the pleasure of moderating a webinar with David Gage, Ph.D. of BMC Associates where we discussed communication and its role in family business transitions.  Ineffective communication can plague any company, but it can be a particularly difficult issue for family businesses dealing with emotionally-charged relationships and decisions around succession and estate planning.

David is a mediator and clinical psychologist who works with family businesses across the country to help them resolve conflicts.  […]

July 30, 2013 Family Owned Businesses Read more...