7 Things You Should Consider Before Involving Your Child in the Family Business

There is a lot to consider before getting your older involved in a family business. Here are 7 that might be important.

Family business tip #1 - Is your child mature enough to handle the job?

Before you even begin thinking about employing your child in your family business, you have to consider whether he or she is mature enough to hold a part-time job. Legally, you can hire your child if he or she has a work permit and is over 14 years of age. However, some 14 year-olds are not yet ready to hold a job.

Family business tip #2 - Will the job work out with his or her schedule?

Some kids are so involved with school and extra-curricular activities, including sports, that it isn't realistic to expect your child to hold a part-time job, even during the summer. You don't want to have your kids trying to do too much.

Family business tip #3 - How and how much will you pay your child?

You need to determine wages and how you will pay your child before he or she starts working. It is legal for parents to pay their own children in cash when working in a family business. No taxes need to be paid on the income your child earns. You will want to offer your child at least minimum wage as he or she could easily go out and get a different part-time job.

Family business tip #4 - How will your other employees perceive you hiring your son or daughter?

You will also have to be careful as to how your child will be perceived by other employees. You won't want to give the impression that you don't expect any work out of your child, or that you are showing him or her much favoritism.

Family business tip #5 - Are you ready to draw boundaries between home and work?

When you are both your child's boss and mother or father, you have to set boundaries between the two roles before you child even begin his or her new job. Your son or daughter needs to know when you are his or her boss and when you are his or her parent. Working for your parents can cause a lot of confusion in this area, especially when work is occasionally brought home, as is the case in many family businesses.

Family business tip #6 - How much responsibility are you planning to give your child when he or she begins working for you?