A bare minimum checklist for your business.
Physicians doing business with family members as co-owners, investors, or lenders face a variety of legal and financial risks. This checklist outlines some of the most common issues every doctor should address to protect their assets and their relationships.
Our last discussion outlined some of the reasons that physicians routinely end up as defacto family business owners and how a lack of formality in how that business is legally organized, managed, and owned often creates liability and intra-family conflict. This business relationship takes many forms including business loans to family members, hiring a family member to a run a business you own, being a passive investor in their business or co-owning a business or other asset (like real estate) with both capital and operational contributions.
Regardless of the specifics, you have more to lose than just the money you invested up front. Consider the following business planning checklist the bare minimum and then apply your own fact pattern for any industry specific risks.
The details of successful family business operation fill books and magazines. This covers only the most basic issues and can’t replace professional guidance about your facts that can help protect both your investment and family harmony.
Ike Devji, JD, has practiced law exclusively in the areas of asset protection, risk management and wealth preservation for the last 16 years. He helps protect a national client base with more than $5 billion in personal assets, including several thousand physicians. He is a contributing author to multiple books for physicians and a frequent medical conference speaker and CME presenter. Learn more at www.ProAssetProtection.com.