Hiring Family
As partners of a small home-tool manufacturing business, David and Ken, David's son-in-law, have put all of their energy into their struggling business. As the majority shareholder, David has overseen the product development and manufacturing facets of the business. Ken has been left with the responsibilities of sales, finance, and administration. Many times Ken has told David there has not been enough cash to pay their salaries. One weekend, David decides to review the company's books. He learns that a number of times Ken has taken home a salary when he has told David there was not enough money. In addition, he deliberately did not purchase necessary materials for the business in order to take home a larger salary himself. Stunned by these findings, David does not know whether or not he should confront Ken with these allegations and risk breaking apart his family. Unfortunately, this scenario is all too familiar to many family business owners, yet it does not fairly represent the typical family business. Small business owners are the entrepreneurs who believe in the American Dream. With a lot of ambition and the faith of their families behind them, these people set out to accomplish their dream. Hard work, lots of sweat, and
" Many business owners invest all of their money and energy into a company. Thus, the business has more money in the present to spend on necessities and possible ways of expanding the business. " Even more money can be earned by the children, which can either be invested in an IRA (Individual Retirement Account) or treated as income. Succession of the Family Business Who is competent enough to run the company for the next generation? This is undoubtedly the most difficult and controversial decision a family business owner must make. The communication lines between all of the family involved must be clear and open. 65% of wages be withheld for social security, which in turn is less money that the owner must match for payroll tax purposes. Tens of thousands of dollars can be saved each year by employing family members. In the words of Jeff Wuorio, "It's all about the vision we shared and the fact that we took the right road to success. Also, when family members are given control of a company simply because of their blood relationship, "non-family members are often demoralized and feel frustrated working for the continuous improvement of that business. The family must share a common vision and values for which to base the business on. Hiring family members can enhance a business, but only if it is done with great care. If there is tension or other forms of strife among the members, the future of the business will not be bright. many long hours later most of these determined souls reach it. This can lead to a blending of the separation from work and family. Any additional money earned would require the children file an income tax return.
Common topics in this essay:
Family Business,
Retirement Account,
Accumulation Wealth,
Interpersonal Relationships,
Ken David's,
According BestLoanSource,
American Dream,
Taxation Family,
Wuorio It's,
family business,
business owner,
business owners,
,
future business,
home salary,
income tax,
file income tax,
interpersonal relationships,
told david,
business owner's,
invested ira,
succession family business,
family business owners,
income tax return,
|
Acceptance Essays
