Running a family-owned business is a dream that many hold dear. It can be a great experience for the whole family. Though this business must uphold laws and regulations like other companies, the rules are different in certain respects.
A business run by two married people can choose to be taxed as a partnership or a sole proprietorship. Each of these options will affect your business differently and should be given careful consideration. Be sure to stay up to date on the latest tax laws affecting your company and make changes if your circumstances demand it.
When a family business includes children, there are tax and child labor laws that must be considered. Business owners’ children may not have to pay certain taxes. There are still many laws to abide by when employing a minor, but some have exemptions when a child works for a parent.
Every type of business may be subject to variations in the law. Family-owned businesses have several, including some for parents who work for their children. To make sure you stay within the law and up to date, visit www.sba.gov/blogs/running-family-business-within-law-0