Lawyers for Family Business. Labor, Tax, Corporate and Civil Law advice

Advice for family businesses

At CECA MAGÁN Abogados, we advise family businesses in which the interests and efficiency of the business are combined with the interests of the members of the family, both in their patrimonial (as partners of the companies) and professional (as managers of the companies) aspects.

The fact that this advice is approached in a multidisciplinary way, allows us to avoid that the measures adopted in any of the areas interfere negatively in the others through our anticipation of the different vicissitudes that family businesses must face, which requires a personalized analysis of each case, often simultaneously from the tax, civil, commercial and labor perspectives.

Special Features of the Taxation of Family-Owned Businesses and Business Families.

Wealth Tax.
Individual Income Tax (dividends and capital gains).

Transfer during the donor's lifetime.
Inheritance upon death.

Individual Income Tax (compensation for work performed by family members based on the nature of the relationship).
Corporate Income Tax (deductibility of compensation paid to family members).
Analysis of the most appropriate corporate structure from a tax efficiency perspective, both in terms of business management and compensation for partners and managers, as well as in preparing for generational succession.
Advice regarding tax audits, which, in the case of family-owned businesses, frequently target both the companies and their partners simultaneously.
Representation and defense of the client in proceedings before the tax authorities, whether at the administrative, economic-administrative, or judicial level.

Characteristics unique to Family Businesses and recurring labor issues:

Social Security classification of family members.
Excluded employment relationships.
Possible existence of commercial or senior management relationships unknown to the parties involved.
Phased retirement plans for outgoing generations.
Group-wide risk for business groups.
Other labor-related issues directly related to family businesses.

Specific features and considerations in advising Family-Owned Businesses from a corporate perspective.

Implementation of the corporate structure best suited to the family’s plans regarding new investments, divestitures, international expansion, preparation for generational succession, risk mitigation, etc.
Adaptation of the articles of incorporation to shareholder agreements that may be filed with the Commercial Registry.
Efficient organization of the companies’ governing bodies.
Analysis and, where appropriate, implementation of alternative financing systems (listing on the Alternative Stock Market [MAB], venture capital firms, etc.).
Advice in cases of corporate disputes and director liability.
Right of withdrawal of partners from the family business.

Civil Law matters related to Family Businesses:

Succession Planning: advice on drafting wills, succession clauses, and, where applicable, succession agreements.
Prenuptial agreements.
Appropriate matrimonial property regimes (marriage contracts).
Common-law couples.
Advance directives covering situations of sudden incapacity.
Establishment and implementation of a Family Council.
Negotiation and drafting of family agreements and, where applicable, a 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.