In this video, Mark J. Kohler, CPA and attorney, explains why every small business owner should hold a Family Board Meeting—a powerful yet underutilized strategy for reducing taxes, strengthening asset protection, and ensuring long-term business success.
He breaks down the five key steps to conducting an effective Family Board Meeting, from cleaning up legal documents to keeping proper records. You'll learn how to legally write off travel and dining expenses, involve family members as advisors, and discuss essential financial topics like wealth building, tax strategies, and legacy planning.
This strategy isn’t just for large corporations—any small business owner can implement these meetings to make their business more legitimate, organized, and financially efficient.
FAQ: How Business Owners Hold a Family Board Meeting
1. What is a Family Board Meeting?
A Family Board Meeting is a structured gathering where business owners discuss their company with selected family members or advisors. These meetings help with business planning, financial education, tax strategies, and legacy building.
2. Why is holding a Family Board Meeting beneficial?
Tax Savings – Travel, dining, and payments to family members can become legitimate tax deductions.
Better Asset Protection – Strengthens legal standing and compliance.
Business Growth – Encourages strategic planning and financial literacy.
Legacy Planning – Helps involve family members in long-term business decisions.
3. Who should be involved in a Family Board Meeting?
Typically, the board consists of:
Business owners (you!)
Family members (spouse, children, parents)
Trusted advisors (friends, mentors, or professionals)
Children can be included, especially if they’re teenagers or college students, to help them understand business principles.
4. How often should a Family Board Meeting be held?
At least once a year (to maintain legal compliance).
Some businesses hold quarterly or monthly meetings to stay on track.
5. What are the steps to holding a successful Family Board Meeting?
Clean Up Legal Documents – Ensure your LLC or corporation has proper operating agreements, bylaws, and corporate records.
Choose Board Members – Select 3-7 trusted individuals as advisors.
Schedule the Meeting – Tie it to a business trip or family travel for tax deductions.
Plan the Agenda – Discuss tax strategies, wealth-building, business goals, and compliance.
Keep Proper Records – Document everything and store it in your corporate book.
6. Can travel and dining expenses be tax-deductible?
Yes! If you schedule a Family Board Meeting as part of a trip, airfare, lodging, and meals can be business expenses. However, only the business-related portion of the trip is deductible.
7. What should be included in the meeting agenda?
Business performance updates
Tax strategy discussions
Financial planning and investments
Family members' roles and responsibilities
Compliance and legal obligations
8. How do I ensure the meeting is legitimate?
Schedule a dedicated time and location.
Have a written agenda.
Take meeting notes and file them in your corporate records.
Use professional guidance, like the services offered by Main Street Business Services, to structure and document your board meetings.
