Wealth Building for Family-Owned Businesses

Many of my clients have a business that is "family owned." Often that means that the income from the business is co-mingled directly into the family's personal financial accounts.

Not only is that strategy a tax nightmare but it also is a real limitation to your wealth-building capacity. Check out this article by Wells Fargo Business.

Here are a few tips to work on:

1. Separate the business and personal accounts. This is a must!
2. Set up an LLC or Incorporation for your business. This is a step many entrepreneurs overlook but is critical to protecting your family and your personal assets.
3. Meet with a good financial planner and accountant to establish a plan and action steps for maximizing your tax advantages.
4. Keep good financial records. There is absolutely no reason you can't hire a bookkeeper to keep your bank records in order. Use QuickBooks (or some other good system) to track your banking info.
5. Stay connected to your financial statements. Many entrepreneurs hate dealing with "the finances." They want to outsource it so they don't have to deal with it. Be sure to stay current on your picture by reviewing your P&L and Cash Flow reports regularly.

Create a plan today to get your wealth-building plan in place. Need help with resources? Feel free to ask here for any help you need.