Whether you are starting a new venture or seeking to preserve an existing one, there
are important legal and business planning issues that you should consider.
Key Issues for Family & Small Businesses
No one lives forever. When there is a leadership transition, whether because of death,
incapacity, or retirement, many businesses fail. Often, this consequence could have
been avoided with foresight and planning. Whether the goal is to sell to employees
or an external buyer or to transfer control to a new generation of family owners,
business owners cannot simply wait and expect that things will work out for the best.
Carefully considered and regularly updated succession planning is a crucial component
of family business resilience.
In a family business, each stakeholder occupies one or more of the following three
roles: family member, business owner, and business employee or manager. Some participants
occupy all three roles simultaneously; others may be family owners but not managers.
The governance challenge is managing the expectations of family stakeholders in different
positions of authority and risk taking. Generic governance best practices need to
be adapted to fit the needs of the business. For example, some family businesses create
a separate family advisory board to communicate with family stakeholders.
Tax rules and other regulations have increased in complexity, making it a challenge
for well-intentioned business owners to keep track of what is necessary. Many regulations
serve essential purposes, including public safety and worker protection, so it is
crucial to ensure that businesses are well informed and have the resources they need
to meet their compliance obligations.
Every South Carolina family and small business should identify key vulnerabilities
and make adjustments to enhance its resilience to disaster. This planning should include
the safety and wellbeing of employees, data security, and the ability to overcome
business disruptions. The resilience of locally owned businesses is integral to the
resilience of their communities.
Especially when co-owners are family members, it can be hard to anticipate the possibility
of serious disagreements. Experienced lawyers can help navigate these disputes when
they arise to preserve business value and, if possible, to avoid further rupturing
of family relationships.
For many family and small businesses, especially those that are located in rural communities,
it can be hard to find affordable legal and accounting services or to find a bank
willing to extend credit. These challenges can be exacerbated for business owners
who serve historically underrepresented and disadvantaged communities. By partnering
with the S.C. Bar and with organizations including the S.C. Small Business Development
Center, SCORE, and S.C. Competes, the Family and Small Business Program is working
to address the gap in access to financial and legal support.
Get Help
Please contact us for specific referrals. We will be glad to connect you with lawyers, accountants,
community banks, and other service providers. Below, you will find links to organizations
that work with small and family businesses, as well as to information about choice
of entity, business succession, licensing, dispute resolution, and disaster planning.
The SCORE Midlands Chapter, headquartered in Columbia, SC with satellite (branch) locations.
SCORE volunteers are successful real-world business professionals who volunteer thousands
of hours to help existing and startup businesses succeed. They are experts with experience
in areas such as accounting, finance, human resources, consulting, import/export,
law, operations, production, retail, wholesale, manufacturing, sales, marketing, management,
business plan preparation, strategic planning, and many other business disciplines.
Every year thousands of small business owners turn to the SC SBDC for private consulting. Entrepreneurs in all areas of business and industry have
found success with the assistance of their local Small Business Development Center.
SCBOS is intended to be a one-stop business resource guide to help businesses electronically
meet their duties and requirements in South Carolina.
The S.C. Department of Commerce invites inquiries from entrepreneurs interested in starting new businesses and from
owners of existing businesses who need growth support.
The Department also provides resources for disaster planning and recovery: A large-scale
disaster anywhere in the state could disrupt normal operations and affect employees
of any business. The South Carolina Department of Commerce is here to assist business
and industry in disaster preparedness, response, mitigation and recovery from natural
or man-made disasters.
The Secretary of State’s Office administers corporate filings for corporations, nonprofit corporations, limited liability
companies, limited partnerships, and limited liability partnerships.
As a public resource, the S.C. Bar has provided general overviews of unincorporated
businesses and corporations.
A Leader in Small Business Lending. For more than 64 years, Business Development Corporation (BDC) has been financing small businesses in South Carolina, leading to the creation of
thousands of new jobs for the citizens of the Palmetto State. Since 1958, BDC and
its associate company, Certified Development Corporation (CDC), have approved more
than 3,039 loans totaling in excess of $1.84 billion, making them leaders in economic
development lending and job creation in South Carolina.
The South Carolina Department of Consumer Affairs has information concerning data privacy in general and what the law requires of small businesses in the event of a breach.
SC Competes promotes economic development through actionable research, support of industry clusters,
and education and workforce development.
Our Mobile Law Office
Palmetto LEADER
We understand the importance of outreach, and we are taking our program on the road
to smaller South Carolina communities that cannot easily reach us. The Palmetto LEADER
is a custom-built bus that includes two private offices, a waiting area, and technology
that the law school uses to deliver on-site services such as drafting wills, reviewing
legal documents, and providing legal counsel to those who are otherwise unable to
afford assistance. To our knowledge, it is the only mobile law office operated by
a law school in the United States.
Challenge the conventional. Create the exceptional. No Limits.
