This allows them to provide advice that combines the interests and profitability of the business with the interests of the different family members, both in terms of their assets (as shareholders in the companies) and their services (as company managers).
The fact that this advice is given with a multi-disciplinary approach in mind prevents the measures adopted at a certain level from negatively interfering at any other level, by being able to anticipate the different challenges that family businesses face. This requires a costumized analysis of each case, often addressing tax, civil, commercial and labor issues simultaneously.
Specific characteristics of the tax obligations for family businesses and business families
Taxation at ownership level:
- Wealth Tax
- Personal Income Tax (dividends and capital gains)
Taxation linked to the generational succession of the ownership of the family business:
- Inter vivos transfers
- Succession upon death
Taxation related to the management of the family business:
- Personal Income Tax (compensation for the work performed by family members depending on the nature of the relationship)
- Corporate tax (deductibility of compensation paid to family members)
- Analysis of the most appropriate corporate structure taxwise, in terms of business management, shareholders and managers ‘s compensation, and generational transition planning
- Advisory services ahead of a tax inspection, which, in the case of a family business, is often performed simultaneously against the companies and the shareholders
- Representation and defense of the client in proceedings before the tax authorities, whether in an administrative, economic-administrative or judicial setting
Specific characteristics of family businesses and recurrent issues in the labor field:
- Family members registration with the Social Security
- Excluded labor relations
- Possible existence of commercial or top management relations with the parties being unaware
- Progressive retirement formulas for retiring generations
- Group of companies’ risk
- Other labor issues directly related to a family-owned business
Specific characteristics and issues to be taken into consideration when advising a family business from a corporate point of view.
Implementation of the most appropriate corporate structure for the family’s projects in terms of new investments, disinvestments, internationalization, preparation of generational succession, risk limitation, etc.
- Adjustment of the company by-laws to the Shareholders Agreements fit for public registration with the Commercial Registry
- Efficient organization of the companies’ governing bodies
- Analysis and, where appropriate, implementation of alternative financing systems (access into the Alternative Stock Market -MAB-, venture capital companies, etc.)
- Advisory services in corporate conflicts and director’s liability
- Separation rights of the family business’ shareholders
Matters concerning the family business from a civil law stance:
- Succession Planning: Advice on the preparation of wills, inheritance clauses and, if necessary, succession agreements
- Pre-nuptial agreements
- Appropriate matrimonial property regimes (Marriage settlements)
- De facto couples and civil unions
- Preventive powers covering cases of supervening incapacity
- Constitution and implementation of a Family Council
- Negotiation and drafting of family agreements and, where appropriate, Family Protocol
Contact Our Lawyers Specialized in Family Businesses
Our lawyers focused on family businesses are highly specialized in all the different legal areas involved in dealing with in this type of businesses, wich usually have their own idiosyncrasy. We can provide you with a comprehensive vision and cross-sectional service in tax, labor, corporate, civil and procedural matters.
Rest assured, we accrue more than 47 years of experience. Schedule an appointment with our experts and entrust us with your legal matters. We are only a phone call away.