Startup Funding Espresso – Structuring a Family Office

Investor Connect Podcast

Structuring a Family Office Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Structuring a family office requires many decisions in order to find the optimal solution. Consider these points in structuring your family business: Who does the family business serve? This typically includes the family and their offspring. What services should the family office provide? There’s a cost to the business for providing services. For those the family office serves, what specific services are performed? It’s best to provide a core set of services that can be done cost effectively. Are you using in-house or outsourced services? The choice of internal or external support has a significant impact on the cost of running the business. This is particularly important with financial investment work. How much do you charge the family member for services rendered? If everything is free then the cost can go through the roof. Should the services generate a profit for the family business or just cover the costs? There’s always overhead and uncovered expenses in a business that need to be paid for. What oversight of expenses should be put in place? There’s often the need for a controller function in the family business. What legal structure should be used? Most family offices use an LLC with S-Corp designation but there are benefits to C-Corp and other structures. Consider these questions in structuring your family business. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact [e-mail] Please , share, and leave a review. Music courtesy of .