Learn to Work Together With Your Spouse

Most successful small businesses start off as a family business.

You know the saying. “The couple that businesses together profits together and stays in business together.  “Why would you go into business with your spouse?” many people will ask.  There are many benefits in partnering with your spouse. 

Here are just a few:

  1. Family unity.
  2. Increased income.
  3. Tax advantages.

Family Unity
Business partners spend countless hours brainstorming, strategising and sometimes even commiserating.  If your spouse is your business partner, all that time spent together working toward your common purpose is often building unity between the two of you as you struggle and succeed together.

Most successful small businesses start off as a family business.

A family business can provide spouses with a more balanced lifestyle.  Because both partners are parents they can spend an equal amount of time with their children, which enhances family relationships.

Because they work together they will understand the issues involved in the business, better. And the family will give and take in order to accommodate both partners and the business.  If spouses have their business in common, their paths run parallel, rather than just occasionally intersecting. 

If you have a family business, make sure you set down rules and boundaries which build not only your business, but also your family. 

The advantage of working as a team is that you both know how to work together to get the best advantage for the whole family. 

Most spouses complement one another well, each bringing skills or knowledge into the business that the other one requires. The synergy that is created by a management team that are also married can do wonders for any business.

Increased Income
Many couples start their family business with the sole aim of increasing family time and family income.  Often the income will be increased when the primary caregiver becomes employed in the family business, bringing in a second salary. 

Sometimes a full time spouse takes on the home business in order to bring in income through self-employment.  Sometimes both spouses might decide to combine their skill sets and earn more than they would as someone else’s employees.

Whatever the situation a motivated couple with a solid business plan can definitely increase the family income.  If you have a business that operates from home, this will also save you money, as well as increasing the amount of family time you have with the children.  Costs for child care and commuting are just two that can be eliminated if you operate a family business from home.

Tax Advantages
There are also many tax advantages if you have a family business. 

Not only will you be able to charge to the business (and have tax deductible) some of the costs of the family home (if the business is home based), but you will also be able to split income between a husband and wife and thus lower your tax.

Sometimes you can also split income with older children who actually work in the business resulting in even greater tax advantages. This is best achieved through possibly running your business under a Family Trading Trust.

The Trading Trust for a family is by far the most superior of all business structures. Don’t let anyone tell you otherwise. It doesn’t matter if the person is an accountant or lawyer or business adviser – if they put you off a family trading trust for your business get another opinion. Write to us and we will point you in the right direction.

Companies, Partnerships, Sole Trader – they are all fine but in general the Trust is superior for asset protection, tax savings, charity, family income splitting etc etc

Where business trips are required, the fact that both spouses make the trip on behalf of the business means the majority of the costs are tax deductible. It can mean that whenever business and pleasure is included in the one trip the net cost can be heavily reduced. 

There is a lot to consider when starting a family business. The above points are just some of the reasons to give you food for thought when looking at partnering with your spouse.

Many spouses find their family life enhanced more than they could ever have imagined, by having a business where they can both work together and bring profit to the whole family.

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