In this issue
Problems among people who work together don't go away when ignored or sidestepped, especially when those people are linked by bonds of kinship, affection, and economic incentive. Nor do the problems just continue to simmer. As when you put a lid on a simmering pot, the confused medley of grievances, anger, and hurt feelings within tend to boil up and scald somebody.
At least that is what we psychologists believe. What actually happens in business-owning families?
For almost a decade, the federal government has been offering tax credits for investments in affordable rental housing for working Americans of modest means. To some, the little-publicized program may seem like just another do-gooding government welfare scheme, but many companies have recognized that it is also a good deal for them. Warren Buffett alone has reportedly invested close to $100 million in it through Berkshire Hathaway's World Book subsidiary.
For many family businesses, the S corporation has always had an advantage over the regular corporation for tax purposes. The S corp form affords the same legal protection as a regular corporation while eliminating the double tax that occurs when income is taxed once at the corporate level and again after it is distributed to shareholders as dividends.