Home – New Forums Starting your journey tricky business structure due to current circumstances Reply To: tricky business structure due to current circumstances

  • Total posts: 805
Entrechan, post: 245497, member: 93890 wrote:
Some advice re structure and preempting possibly issues would be great.

We have this set up with my family. My father and I started a consulting business together years ago (Company A), which has grown and we both have additional businesses operating out of the same premises independent to Company A..

My brother has a separate business (Company B) with my father involved as well, which I am not a part of, but all the businesses leverage clients and support from each other. Even though I am not financially part of Company B, I help where I can with advice and time. This is what family does.

I really think a lot boils down to the type of family relationships and communication, if you have other family members involved in the current business, then it gets tricky if you are being paid in full by the family business and spending hours working on your new business (WOW lots of businesses LOL). The main issue you will face is resentment.

You need to consider working outside of your paid hours to begin with and make sure the family are aware that you will be paid for working from the current business for time spent on that business alone. Even consider time sheets to keep comms open. This will avoid any resentment issue from popping up.

If you do a division of the current business, the money will still be part of that. You need to decide to either join the businesses through a division, or open a separate company with you as Director. I RECOMMEND the latter.

You must keep everything straight down the line, I know you said you need your current income, so to avoid resentment, stick to working outside your hours, even lunch break etc until you can draw a wage from your new business.

PREMISES: As for the premises I can not see what the issue would be, depends on the business type, if it’s an office, it means you are just using the same desk, if it’s retail or manufacturing there may be more issues. etc.

Sorry for the length, but I have been in your shoes exactly, we now have 5 separate companies (A, B, C, D and F) all operating within the same premises and shared resources.

If you need any specifics just ask

Mischelle :):):):)