{"id":7404,"date":"2022-05-02T11:01:25","date_gmt":"2022-05-02T09:01:25","guid":{"rendered":"https:\/\/b-plannow.com\/?p=7404"},"modified":"2025-03-03T11:19:35","modified_gmt":"2025-03-03T10:19:35","slug":"family-business-when-it-is-convenient-and-how-to-start-it","status":"publish","type":"post","link":"https:\/\/b-plannow.com\/en\/family-business-when-it-is-convenient-and-how-to-start-it\/","title":{"rendered":"Family business: when it is convenient and how to start it"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/b-plannow.com\/en\/family-business-when-it-is-convenient-and-how-to-start-it\/#Family-business-definition\" >Family business: definition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/b-plannow.com\/en\/family-business-when-it-is-convenient-and-how-to-start-it\/#What-are-the-requirements-for-starting-a-family-business\" >What are the requirements for starting a family business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/b-plannow.com\/en\/family-business-when-it-is-convenient-and-how-to-start-it\/#The-deed-of-incorporation-notary-yes-or-no\" >The deed of incorporation (notary yes or no?)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/b-plannow.com\/en\/family-business-when-it-is-convenient-and-how-to-start-it\/#Advantages-and-disadvantages-of-the-family-business\" >Advantages (and disadvantages) of the family business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/b-plannow.com\/en\/family-business-when-it-is-convenient-and-how-to-start-it\/#Costs-and-tax-obligations-of-a-family-business\" >Costs and tax obligations of a family business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/b-plannow.com\/en\/family-business-when-it-is-convenient-and-how-to-start-it\/#Some-examples-of-family-business\" >Some examples of family business<\/a><\/li><\/ul><\/nav><\/div>\n<p>When starting a new business it is important to work with people you trust 100%. For this reason (but also several others) you might consider <strong>opening a family business<\/strong>. After all, even <strong>Walt Disney<\/strong> one day said:<\/p>\n<blockquote><p>&#8220;To do business, a man should never neglect his family&#8221;.<\/p><\/blockquote>\n<p>However, not all that glitters is gold: <strong>setting up a family business<\/strong> offers you numerous advantages, but also involves several potentially negative aspects.<br \/>\nIn order for the family business to be truly a success, it is therefore necessary that you structure and manage it correctly. To do this, you must first of all know what is meant, by law, by a family business and what are the necessary requirements, know its pros and cons, but also carefully evaluate what costs it has and which tax obligations require the establishment of a family business.<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Family-business-definition\"><\/span>Family business: definition<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A family business can be defined as a sole proprietorship in which the owner and his family members collaborate (which can be the spouse, relatives within the third degree and relatives within the second degree). Family members, as reported in <strong>Article 230 bis of the Civil Code<\/strong>, are recognized various rights, including a share of the company&#8217;s profits, in exchange for the collaboration they provide.<\/p>\n<p>However, there are <strong>different types<\/strong> of family businesses:<\/p>\n<ul>\n<li>the <strong>marital business<\/strong>, in which the family business (which can be owned by both spouses or only one of the two) is managed jointly by both spouses, who are under a community property regime;<\/li>\n<li>the <strong>sole proprietorship of one of the two spouses<\/strong>, in the event that the other spouse or family members collaborate with the family business, without however participating in the management of the company;<\/li>\n<li>the <strong>sole proprietorship of one of the family members<\/strong>, in which the collaborating family members have the right, unless otherwise agreed, to the management of the company and the attribution of property rights;<\/li>\n<li>the <strong>social enterprise of several family members<\/strong>, who manage it jointly.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What-are-the-requirements-for-starting-a-family-business\"><\/span>What are the requirements for starting a family business?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The<strong> sentence 5603\/2022 of the Cassation<\/strong> identifies some key elements of the definition of a family business. Specifically, the conditions for setting up a family business are:<\/p>\n<ul>\n<li>the existence of a company;<\/li>\n<li>the particular nature of the participants (spouse, relatives and relatives);<\/li>\n<li>the carrying out by the family member of a continuous work activity;<\/li>\n<li>the increase in the productivity of the company resulting from the work of the participant.<\/li>\n<\/ul>\n<p>Can have the <strong>status of collaborator of a family business<\/strong>:<\/p>\n<ul>\n<li>the spouse, who is civilly united and the cohabitant;<\/li>\n<li>legitimate, adopted and affiliated children;<\/li>\n<li>legally and judicially recognized children born out of wedlock;<\/li>\n<li>children born from a previous marriage of the spouse;<\/li>\n<li>minors regularly in custody;<\/li>\n<li>grandchildren in direct line and in collateral line (children of brothers and sisters);<\/li>\n<li>brothers and sisters;<\/li>\n<li>ascendants (parents, grandparents, great-grandparents) and those who are equivalent to parents (adopters, affiliates, natural parents of legally recognized children, etc.);<\/li>\n<li>relatives up to the third degree;<\/li>\n<li>relatives up to the second degree.<\/li>\n<\/ul>\n<p>Remember that the <strong>degree of kinship must exist for the entire period of existence of the family business<\/strong>. This means that, in the case of a family business between spouses, a possible divorce implies the forfeiture of the fiscal and tax benefits and the exclusion from the subsidized regime provided for this type of business.<\/p>\n<p>Within a family business, the family member must carry out a <strong>continuous<\/strong>, <strong>regular<\/strong> and <strong>constant<\/strong> <strong>work activity<\/strong>, even if it is not necessary to be full-time. The <strong>work<\/strong> done by him can be both manual and intellectual, but it must be <strong>relevant to the business of the company<\/strong> and able to have an <strong>impact on its performance<\/strong>. This work cannot consist solely and exclusively in the management of the company, because, in this case, we would be dealing with a mere corporate relationship and not a family collaboration.<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The-deed-of-incorporation-notary-yes-or-no\"><\/span>The deed of incorporation (notary yes or no?)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You have <strong>several procedures<\/strong> for setting up a family business. A company of this type, for example, can be started from scratch or from an existing sole proprietorship.<\/p>\n<p>The Civil Code does not oblige you to set up a family business in the presence of a <strong>notary<\/strong>: you can, in fact, only resort to the help of an accountant, but the notary can be particularly useful if you intend to take advantage of all the tax benefits provided for this type of activity.<\/p>\n<p>You must also remember that, even and especially in the case of a family business, <strong>establishing roles and responsibilities<\/strong> in time can prove to be decisive for the success of the company itself. To avoid misunderstandings, therefore, it is advisable to put everything in black and white with an <strong>informal agreement<\/strong> or a <strong>family statute<\/strong>.<\/p>\n<p>On a practical level, after contacting a notary, you have to choose whether to set up a family business through a <strong>public deed<\/strong> or with an <strong>authenticated private agreement<\/strong>. The deed of incorporation must then be registered with the <strong>Business Register<\/strong> (Registro delle Imprese). To do this, you must go to the<strong> Chamber of Commerce<\/strong> within one month of setting up the family business. That&#8217;s not all: you must then request the <strong>VAT number<\/strong> from the Revenue Agency (Agenzia delle Entrate), open your <strong>INPS position<\/strong> and, possibly, also the <strong>INAIL position<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advantages-and-disadvantages-of-the-family-business\"><\/span>Advantages (and disadvantages) of the family business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A careful analysis of the <strong>advantages<\/strong> and <strong>disadvantages<\/strong> associated with setting up a family business is what allows you to understand whether this option may or may not represent the most suitable solution for you.<\/p>\n<p>As already mentioned, the <strong>benefits<\/strong> are essentially linked to the possibility of sharing an entrepreneurial adventure with people you trust, on whose support you can always count and on whom you can accurately know your wishes, needs and any problems. This level of knowledge also allows you to communicate more efficiently. Not only that: setting up a family business minimizes the need to find staff and, therefore, shortens the time needed to start your business.<\/p>\n<p>Mutual knowledge between family members and possible excessive confidence, however, can also represent a <strong>hindrance<\/strong> in terms of professionalism. Furthermore, personal issues that may arise within a family business can have an even greater negative impact than those that may occur in a &#8220;traditional&#8221; company. In this regard, as previously highlighted, it is necessary to define roles, tasks and rewards in time and with absolute precision.<\/p>\n<p>There is another negative aspect related to the establishment of a family business: the possibility of counting on relatives allows you to speed up the time for recruiting personnel but, inevitably, it represents a limit from the point of view of skills and experiences that your business can acquire.<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Costs-and-tax-obligations-of-a-family-business\"><\/span>Costs and tax obligations of a family business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Previously, we referred to the bureaucratic process necessary for setting up a family business, which is particularly lean; the time has come to devote a more in-depth focus to the <strong>costs<\/strong> and <strong>tax aspects<\/strong> related to this very important step for you.<\/p>\n<p>In this regard, it is appropriate, first of all, to specify that a variable capable of significantly affecting the costs of setting up a family business is the eventual recourse to the <strong>notary<\/strong>. In the event that you decide to do without it, you will have to pay the registration tax (168 euros) and meet the costs for consulting an accountant (which, approximately, are between 150 and 300 euros). Registration with INPS and the assignment of the VAT number by the Revenue Agency are, however, free. As for notary fees, you should know that they are around 1000-1500 euros.<\/p>\n<p>If you set up a family business, you can do without various bureaucratic and tax obligations and benefit from various advantages regarding <strong>taxation<\/strong>. The most interesting aspect, in this sense, is linked to the <strong>possibility of attributing to family collaborators up to 49% of the income produced<\/strong>. Since taxation on individuals increases as income increases, this possibility allows you to mitigate the progressivity of the tax and, in this way, reduce the tax burden. Furthermore, a family business allows you to provide social security coverage to employees.<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Some-examples-of-family-business\"><\/span>Some examples of family business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When you think of a family-run business, the example of a small craft shop, a small shop or a small restaurant often immediately springs to mind; You may not know, however, that there are examples of highly successful family businesses in virtually every business environment, even in the <strong><a href=\"https:\/\/b-plannow.com\/en\/how-to-find-innovative-ideas-for-startups\/\" target=\"_blank\" rel=\"noopener\">fastest-growing and most innovative<\/a><\/strong>, including the tech sector.<\/p>\n<p>Just think, for example, of <strong>Comcast<\/strong>, one of the most important providers of telephony and high-speed internet services in the United States of America: it is a family business founded in 1963 by Ralph J. Roberts and still today the family owns over 33% of the company.<\/p>\n<p>Another example of a successful family business in the tech field is <strong>Dell<\/strong>, a US multinational, one of the most important in the world in the production of PCs and IT systems.<\/p>\n<p><strong>Ford<\/strong>, one of the most renowned brands in the automotive sector, was born as a family business. Even today, the Ford family owns 40% of the company&#8217;s shares and is directly involved in its management.<\/p>\n<p>The establishment of a very successful family business is also possible in Italy: as can be seen from the Family Business Index of 2021, the third family business in the world is, in fact, the <strong>EXOR<\/strong> financial holding, founded and controlled by the Agnelli family.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Do you want to read all the articles related to the stage your startup is in?<\/strong><\/p>\n<ol>\n<li><a href=\"https:\/\/b-plannow.com\/en\/how-to-start-a-successful-startup-and-make-it-work\/#Take_the_plunge\"><strong>Take the plunge<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/b-plannow.com\/en\/how-to-start-a-successful-startup-and-make-it-work\/#Take_the_first_steps\"><strong>Take the first steps<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/b-plannow.com\/en\/how-to-start-a-successful-startup-and-make-it-work\/#How_to_start_a_startup\"><strong>How to start a startup<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/b-plannow.com\/en\/how-to-start-a-successful-startup-and-make-it-work\/#How_to_grow_a_startup\"><strong>How to grow a startup<\/strong><\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>When starting a new business it is important to work with people you trust 100%. For this reason (but also several others) you might consider opening a family business. After all, even Walt Disney one day said: &#8220;To do business, a man should never neglect his family&#8221;. However, not all that glitters is gold: setting [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":17685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69],"tags":[78],"class_list":["post-7404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-take-the-plunge","tag-guides-and-regulations"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Family business: how to start it and what to do | B-PlanNow<\/title>\n<meta name=\"description\" content=\"What are the legal requirements and costs of a family business? Who can be part of it? 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