Business Law

Running a family business successfully can be one of the most rewarding and challenging endeavors you’ll face. On one hand, the deep trust and shared vision that family members bring to the table create a strong foundation. On the other hand, blurred boundaries and overlapping roles can lead to conflicts that jeopardize both business success, and family harmony. The most successful family businesses are intentional. They take the time to set ground rules, define expectations, and prioritize mutual respect across generations. Whether you’re starting a new venture or strengthening an existing one, the principles below can help guide your path to long-term success. The Importance of Clear Boundaries Family ties often lead to unclear professional lines. Without explicit boundaries, personal issues can spill into the workplace, and vice versa. It’s essential to define where family ends and business begins. This means creating policies that apply equally to all employees, and setting expectations about professional conduct during business hours, and knowing when to say “work talk if off-limits here”. That’s why establishing boundaries is not just important, it’s foundational. Clarify when and where business should be discussed. Set expectations for professional conduct during business hours and create fair, consistent policies that apply to all employees – family, and non-family alike. These structures help reduce emotional friction and ensure accountability. Establishing regular check-ins and structured meetings can help keep discussions focused on business objectives rather than personal grievances. These boundaries protect both the company and family relationships. Defining Roles to Avoid Overlap One of the most common pitfalls in family businesses is role ambiguity. When job responsibilities are not clearly defined, it can lead to duplicated efforts, missed tasks, and power struggles. In some cases, family members may assume informal authority based on age, personality, or family hierarchy rather than business need. It’s critical to clearly define each family member’s role, responsibilities, and authority within the company. Job descriptions, performance evaluations, and delegation protocols help everyone understand what’s expected and who makes which decisions. Formalizing roles also supports hiring and succession decisions down the road. As your business grows, having these systems in place will make it easier to onboard new team members and evolve with the company’s needs. Cultivating Mutual Respect Respect is the secret glue that holds a successful family business together. When reports show that only 37% of U.S. employees feel that they are treated with respect at work, you don’t want your family to become a statistic. Even when disagreements arise – and they will –maintaining respect ensures that conflicts remain constructive rather than destructive. Encourage open communication where everyone feels heard. Recognize each person’s expertise and contributions, regardless of their family position. When tough decisions must be made, focusing on shared goals rather than individual egos helps steer the business forward and protect your family’s legacy. When disagreements do occur, it’s critical to focus on shared goals rather than personal grievances. Conflict resolution strategies, such as facilitated conversations or family councils, can help navigate tension productively while keeping the business on track. Plan for Succession with Care Even the strongest family businesses can falter without a clear succession plan. Whether you’re passing the torch to a child, sibling, or long-time employee, or some combination, leadership transitions are often emotionally charged and legally complex. Succession planning is especially critical in maintaining successful family businesses. Early conversations about future leadership, ownership transfer, and retirement can prevent misunderstandings and hurt feelings down the line. Engaging professional advisors who understand family dynamics and legal complexities ensures that the transition supports both business continuity and family legacy. Partnering with Family Businesses for Long-Term Success At MSB Law, we understand the unique challenges family-run businesses face. Our legal team helps business owners establish clear governance structures, define roles, and create plans that protect both the company and the family. If you’re ready to build a thriving business that honors your family values, contact MSB Law today for personalized guidance.

Starting a business with friends or family can be an incredibly rewarding experience. The trust and shared values you bring to the partnership create a unique foundation for success. But mixing personal relationships with business also comes with challenges that can jeopardize both your venture, and your relationships, if not handled carefully.  If you’re considering launching a business with friends or family, setting clear expectations and structures early on is essential. Here are key steps to help you build a strong, sustainable business while protecting your most important assets – your personal relationships. 1. Have Open and Honest Conversations Before signing any agreements or investing money (especially with friends and family), talk openly about your goals, values, and expectations for forming a business. Discuss how much time, money, and effort each person is willing to contribute. Clarify what success looks like for everyone.And address how conflicts will be managed. These conversations can feel uncomfortable, but are vital for avoiding misunderstandings down the road.  It’s better to “keep accounts short” than risk losing it all in the end. 2. Define Roles and Responsibilities Clearly Just like any other business, you need to clearly outline each person’s role and responsibilities. Who will handle operations, marketing, finances, or customer relations? How much will each person be paid? Clear boundaries reduce confusion, prevent overlap, and ensure accountability. Put these roles in writing so everyone is on the same page. 3. Create Formal Agreements Especially if you’re working with family or close friends, formal legal agreements are essential. Operating agreements, partnership contracts, or shareholder agreements should spell out ownership shares, decision-making authority, profit distribution, dispute resolution methods, and exit strategies. Having these documents protects both the business and your relationships. 4. Set Boundaries Between Business and Personal Life It’s easy when starting a business with friends or family for stress to spill into personal dynamics. Agree on times and places where business talk is off-limits.. Then respect these boundaries to maintain trust and a healthy balance. 5. Plan for Succession and Exit Life changes, and people’s priorities shift. Since only about 30% of family-owned businesses are successfully passed down to the next generation, it’s essential to establish clear agreements in advance for handling ownership transitions, whether due to retirement, a partner’s departure, or unforeseen circumstances. A well-planned exit strategy ensures the business can continue without upheaval, and minimizes emotional strain. 6. Seek Outside Advice Bringing in trusted advisors, legal counsel, accountants, or business coaches can provide objective perspectives and help you navigate tricky decisions. Professionals can assist with drafting agreements and succession plans tailored to your unique situation. At MSB Law, we recognize the special dynamics involved in starting a business with friends and family. Our legal team helps entrepreneurs establish the structures and agreements needed to protect their ventures and relationships. If you’re ready to start your business with confidence and clarity, contact MSB Law today for personalized guidance.

Most business owners begin their journey with a vision, one that typically includes profit, market presence, and longevity. But the values-driven business owners who see their businesses truly thrive, those that build reputations that outlast product cycles and leadership changes, adopt a deeper sense of purpose. They start to behave not as private fiefdoms but as “public trusts”. That shift is more than just ethical; it’s strategic. It unlocks long-term growth, attracts top-tier talent, and reduces the risk of regulatory fallout. If you’re a founder, CEO, or board that is intrigued by this transition, we hope this encourages you to pursue  aligning your good intentions with solid legal structures. The Legal Architecture of Trust Trust is not a vibe. It’s built — slowly, consistently, through every contract signed, every policy written, and every leadership decision made. While culture may be the invisible glue that binds a company together, it’s the legal infrastructure that helps make those values stick. From governance documents and compliance protocols, to hiring practices and dispute resolution strategies, the real foundation of stakeholder trust lies in how your business behaves under pressure, not just in ideal circumstances. That’s why legal planning shouldn’t just focus on risk avoidance. It should reflect your values in action. At MSB Law , we help values-driven business owners bridge this gap. Our firm doesn’t just draft agreements — we design and help implement legal structures that reinforce the kind of leadership our clients want to be known for. Whether it’s building policies that promote transparency, or helping founders implement employee equity programs, the law becomes a tool for integrity, not a hindrance to it. Leading Like You’ll Be Remembered What does it look like to lead as if your company is a public trust? It looks like honoring your word in contracts, even when a loophole would let you off the hook. It looks like offering generous severance – not because you’re legally required to, but because your people deserve dignity. It looks like embedding ethical clauses in vendor agreements, so that your partners reflect your principles and values. These decisions might not make headlines, but they build something far more powerful: positive reputation. While many executives focus on short-term wins –hitting the next quarter’s target, securing that next round of funding, etc. – the business ownesr who lead with integrity take the long view. They think in decades, not months. They prepare for transitions. They guard against mission drift. And this is where our role as trusted legal counsel for values-driven business ownersexpands from transactional to transformational. As trusted legal counsel, we have the privilege of becoming your mirror, your advisor, and your safety net. Rethinking Ownership and Accountability In the traditional model, a business owner’s role is simple: create value and deliver returns. But when you adopt the public trust mindset, ownership comes with a broader definition of accountability. You’re responsible not only to shareholders with a financial interest, but to the employees who build the product, the customers who keep you in business, and the communities that are affected by your operations. Lest you think we’re taking this too far, this is not just philosophical musing. It’s rapidly becoming a business imperative. According to a McKinsey report, companies that actively embrace stakeholder capitalism are outperforming peers on long-term value creation. The takeaway is clear: doing right by people is good business, and legally protecting those intentions is essential. When your operations scale, your liability does too. If your agreements, policies, or communications don’t reflect your values clearly, you leave your company vulnerable to reputational damage, legal scrutiny, and mission misalignment. The Moral Weight of Succession Perhaps the greatest test of treating your company like a public trust is what happens when you step away. Succession is not just an HR process or a legal transaction, it’s a moral moment. It determines whether the values you fought to instill will continue after you’re gone. Too many business owners stumble here. They either delay the planning or treat it only like a financial transaction, ignoring the cultural and ethical dimensions. That’s a mistake. A strong succession plan, designed with the help of experienced legal counsel, ensures that your business doesn’t lose its core identity with your departure. It also protects the livelihoods of the people who’ve trusted you with their careers. At MSB Law, our succession planning services help values-driven business owners articulate their vision clearly, in legal language that can guide future leaders and safeguard your legacy. Legal Tools for Ethical Leadership The truth is, most values-driven business owners want to lead ethically; they just don’t always have the right tools. That’s where well-drafted contracts, employment handbooks, governance frameworks, and shareholder agreements come in. These aren’t just “legal must-haves,” they’re opportunities to encode your values into the very DNA of your business. A well-written partnership agreement doesn’t just prevent lawsuits; it clarifies expectations to help preserve relationship. A transparent bonus policy doesn’t just reduce churn; it shows your team that you mean what you say and that you care about them as more than just a cog in your machine. One recent JUST Capital survey revealed that 84% of Americans believe companies say the right things but fail to back them up. That’s your competitive advantage. When your legal documentation reflects the ethical commitments, both internally and externally, you build real trust, the kind that compounds over time. If you’re ready to operate with a broader sense of purpose and build a legal foundation that supports it, MSB Law is ready to help. As your trusted Overland Park business lawyers, we’re here to provide you the clarity, structure, and foresight you need to lead confidently, and to build something that lasts.

Starting your business succession plan might feel overwhelming. You’ve poured years of hard work, passion, and dedication into your company, so taking the first step towards transitioning can feel emotional and intimidating. However, having a clear succession plan is one of the best ways to ensure the longevity of your business, preserve your legacy, and maintain the well-being of your people. Here’s a straightforward guide on where to begin with your business succession planning to help you develop a grounded, thoughtful, and values-centered approach. 1. Clarify Your Vision and Goals Before diving into the details, take time to reflect on what truly matters to you. Are you most concerned with your business continuing to operate in the same manner? Is financial security your primary goal, or is it more important that family or long-term employees remain involved? Defining these fundamental goals early sets a meaningful foundation for your entire plan. Need help defining what it is exactly that you’re passing on? Check out this article. 2. Start Early and Plan Thoughtfully Succession planning is not a last-minute task—it’s a process that is best pursued through careful thought and early action. Begin the discussion with key stakeholders, such as family, employees, and trusted advisors; and do it sooner than you may feel “ready”. Early conversations help reduce stress and provide everyone involved with clarity about future expectations and responsibilities. 3. Identify and Prepare Potential Successors Whether you’re considering family members, current employees, or external candidates, clearly identifying your ideal potential successors is essential. Evaluate their skills, values, leadership style, and genuine desire to lead. Once you’ve identified possible successors, you can create plans to help them develop any necessary skills and experience over time. Read more about leading and passing on a business of values. 4. Get a Professional Business Valuation Understanding your business’s true value is crucial in creating a fair and realistic succession plan. A professional valuation provides clarity about your financial position, enabling you to make informed decisions about structuring the transition and ensuring the longevity of your company.  Seek out a trusted referral to a business valuation expert, so you can have confidence in the results. 5. Choose Your Transition Method Will you gradually transition ownership, or all at once? Will you pursue the complexity of an employee stock ownership plan (ESOP)? Or sell directly to a key employee, pass the business to family, or sell to an external buyer? Each method has unique advantages and challenges. Deciding your options early allows you ample time to navigate any complexities and prepare all parties involved. 6. Develop a Comprehensive Timeline Establishing a clear timeline ensures everyone involved knows what to expect and when to expect it. Your timeline should include milestones like leadership training, partial equity transfers, or gradual transition of operational control. This clarity helps reduce uncertainty and maintains business stability throughout the process. 7. Create Contingency Plans Even the most thoughtful succession plans can encounter unexpected challenges. Having contingency plans in place, for scenarios such as health issues, sudden changes in successor availability, or market shifts ensures your business remains protected no matter what. 8. Engage Experienced Advisors A business succession plan encompasses a range of complex legal, financial, and emotional considerations. Engaging trusted professional advisors experienced in succession planning, such as attorneys, accountants, and financial planners, as well as trusted personal advisors, like mentors or pastors, ensures your decisions align with best practices and your personal values. At MSB Law, we recognize the importance of a well-planned succession strategy. We are committed to helping business owners like you develop plans that not only secure your business’s future, but also honor your values and legacy. Our approach is always values-driven, focusing on your unique needs and goals. Ready to start your succession planning journey? Contact MSB Law today to speak with one of our experienced attorneys about how we can help you develop a customized succession plan tailored uniquely to you.

As tax season approaches for business owners, staying informed about potential tax changes and taking proactive steps can make all the difference in protecting your financial future. Whether you’re a growing business owner juggling multiple ventures, or a long-time entrepreneur focused on transitioning your companyto the next generation, preparing early can help you navigate shifting tax laws with confidence. What Tax Changes Could Be on the Horizon? While 2025 tax laws aren’t set in stone, discussions are underway regarding potential changes that could impact individuals and businesses alike. These changes may involve adjustments to income tax brackets, available deductions, and business tax credits — all of which can significantly affect your business and financial plans. Proactive planning is essential to avoid unexpected tax burdens. DJ Kim, one of our trusted business and tax attorneys, emphasizes the importance of staying ahead: “Tax laws are always evolving. The best way to protect your assets is to regularly review your business and tax plans, and adjust for any anticipated changes before they go into effect.” Tailored Tax Strategies for Every Values-Driven Business Owner No two business owners are alike, and tax planning should reflect that. For the hands-on business owner — the one who thrives on getting involved in every aspect of their business — tax season presents an opportunity to dive into the details. This type of entrepreneur benefits from regular tax strategy sessions and exploring every deduction or credit available. Partnering with an experienced tax advisor can help maximize savings without overlooking critical details.  That’s one reason we provide free referrals to trusted CPAs, and to other financial professionals, for all our values-driven business owner clients. On the other hand, the legacy business owner — someone focused on succession planning, and seeking to pay their company forward while reaping thebenefits of their hard work — may prioritize minimizing estate taxes and ensuring a seamless and cost-effective transition for the next generation. Trusts, gifting strategies, and long-term tax planning can protect wealth while honoring the future vision for the business. How to Stay Ahead in 2025 Start Early: Gather your financial documents and schedule time to review them with your tax advisor. Plan for the Long Term: Work with trusted professional advisors (business lawyer, CPA, CFP, CFO, or others) to create a comprehensive tax strategy that aligns with your business and personal goals. Embrace Flexibility: Tax laws can change quickly, so regular check-ins with your trusted advisors can help you plan ahead, and then pivot when necessary. Explore All Options: Research available credits and deductions specific to your industry or your unique business model. By taking a proactive approach, both hands-on business owners and legacy-focused entrepreneurs can navigate tax season with greater confidence and efficiency. Partner with MSB Law for Proactive Business and Tax Planning At MSB Law, we understand that every business owner has unique goals and challenges. Our team is here to provide values-driven business owners with the knowledge and insights needed to prepare for the future, no matter what tax changes may come. Schedule a consultation today to discuss your business and tax strategies, and ensure you’re ready to take on tax season 2025 with confidence.