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Married Couples Starting a Business? Follow This Advice

A top lawyer outlines the concrete steps that spouses should take when going into business together.

Nearly 90% of U.S. businesses are family-owned, according to the U.S. Census Bureau. And while working with family can be incredibly rewarding, it also brings a unique set of challenges. That’s especially true for married couples who own a business together. In fact, there are specific legal rules for businesses run by couples that don’t apply to any other family members who go into business together.

Because of those nuances, there are concrete steps that married people should take when they start a business together. “The first thing I always recommend when you have an intact couple excited about starting a business together is having them really think through who’s going to be in what defined role,” says Melinda Previtera, a family law attorney and co-founder of the nationwide law firm Petrelli Previtera.

Previtera says it’s imperative to consult an attorney and put together an operating agreement that spells out everything right from the start. “Because it’s such a huge, life-changing circumstance,” says Previtera, who has appeared every year since 2016 on the Pennsylvania Super Lawyers’ Rising Stars list, “both parties want to understand not only what happens to the family if the business fails, but what happens to the business if the marriage fails.”

In this episode of Promo Insiders, Previtera offers her top advice for married couples starting a business together, as well as mistakes to avoid. She explores the necessity of communication, explains the differences between a pre- and post-nuptial, and outlines when couples should revisit their initial agreement as the business goes on.