After a busy career running the family business, you may not want to just sit around scrapbooking or playing bingo every day. Of course, you retired because you don’t want to work every day. You may want to keep your hand in, though, by consulting for the business you just retired from.
But, where to start?
Have a Formal Agreement.
Even though you’re working for your family business, have a written contract or agreement. Memorializing expectations could prevent ugly misunderstandings down the road. As with all legal documents, contracts or agreements should be reviewed by an attorney to make sure they check all the boxes and cover all the bases.
Set Some Boundaries.
Be clear on when you are and are not available to consult – but keep the company’s interests in mind also.
The company may set some boundaries also. For example, it would be easy to unwittingly undermine the person who replaced you as head of the company. This could make things very tense at the next family reunion, as well as create internal stresses that affect the company’s operations. Know what your duties are and stick to them.
Your Fees and Public Benefits
Before you agree to consult, make sure your fees will not adversely affect any public benefits you may need in the future. Consult with an attorney or financial adviser.
As a consultant, you may be vulnerable to liability. Since your employment status changed, the company probably does not have insurance that covers you. Start checking into professional liability insurance for consultants as soon as you know you will be consulting.
Making it Work.
With some planning, you can contribute to the success of your family business, even after you’ve hung up your spurs.
Good intentions don’t always lead to the direction we want. At Keystone Law Firm, we assist clients with legal questions and planning every day. Call us at (480) 418-8448 or visit our website at keystonelawfirm.com to check out some of our free seminars. Serving the greater Chandler area, including Ahwatukee, Gilbert, Sun Lakes, Mesa, and Tempe.