In Hawaii, family businesses require planning and must comply with all local laws. This type of businesses are typically smaller, but over time, they could grow into a corporation. The right plan for the business will protect the owner’s assets more effectively. A family business attorney in Honolulu, HI can provide sound advice for the owner.
Separating the Family Assets from the Business
The attorney helps the business owner manage their family and business assets. A common mistake that family business owners make is to keep all assets together. If a lawsuit is filed against the company, the family assets are at risk if they aren’t separated.
Establishing Employee Agreements
Employee agreements are necessary to enforce rules, policies, and worker-related guidelines. Family companies that don’t use these agreements face difficulties and cannot hold their workers accountable for issues. When working with family members, a solid agreement will prevent issues and keep workers on task.
Obtaining a License for the Family Business
Family businesses need a license for their business, too. Some small businesses don’t obtain the license as they should. The owner will face certain violations and penalties for operating without a license. Therefore, they should consult their attorney about what type of license they need before opening the doors. The license also dictates how the owner files their taxes and whether or not the business has a board of directors.
Setting Up a Trust for the Business
The owner sets up a trust for the business when conducting estate planning. The plan allows them to give the business to a successor instead of listing it as an asset. The business is transferred then into the trust for further protection against probate. Once it is established, the owner just has to identify the rightful heir.
In Hawaii, family business owners must follow the law when establishing their company. These plans require them to manage assets properly and set up agreements for employees. The owner must have the appropriate license or they could face further difficulties. Families that need legal advice about their business can contact a family business attorney in Honolulu, HI through Goodsill Anderson Quinn & Stifel or visit the website right now.