Stop wondering who should be on your board and start with this test: who would you invite to Thanksgiving? That circle is your board. Spouse, adult kids, parents, a trusted friend. Bring them together once a year, talk business, document it, and you unlock these seven benefits:
Write-offs
Asset protection
Audit proofing
Unity and education
Continuity planning
Accountability
Better banking
Yes you do! Successful business owners don’t go at it alone. A family board meeting turns your inner circle into an advisory team and gives you a formal place to think, plan, and get honest feedback. It also creates a clean paper trail that courts, lenders, and the IRS respect. You do not need to be a big company to do this. One meeting. One set of minutes. Real benefits.
Tax write offs you can actually use. Hold a legit meeting, keep minutes, and the travel, lodging, meals, and meeting costs tied to that gathering become business deductions. Fly in the board on Thursday, meet Friday, send everyone home Saturday, and those days track as business days when the agenda and minutes back it up.
Better asset protection. Plaintiff attorneys look for weak formalities to pierce the veil. Annual minutes say this is a real company with real governance. Separate bank accounts, clean books, and minutes work together to keep claims stuck at the entity and away from personal assets.
Audit proofing with accountable plan provisions. Use your minutes to adopt the policies that protect deductions the IRS asks about. Home office reimbursement. Auto and mileage rules. Per item expensing under the de minimis threshold. Medical and health reimbursement mechanics where appropriate. When an agent asks for the policy, you point to your minutes.
Family unity and education. Talk money. Show a simple income and expense snapshot. Walk through wins and misses. Your family learns how the business really works and can give better input. That pays off when you need help or when succession becomes real.
Continuity planning. If something happens to you, the board already knows the mission, the customers, and where the files are. Pair this with a revocable living trust and a short business continuation memo in your estate plan so the playbook survives you.
Real planning and accountability. Say the goals out loud. Pick three priorities for the next twelve months, assign owners, and set a check in date. The next meeting starts with what happened. That rhythm alone will change results.
Easier banking and dealmaking. Banks, SBA lenders, regulators, and buyers often ask for minutes. Having them ready speeds loans, lines of credit, and due diligence.
If you’d invite them to Thanksgiving dinner, they’re a strong candidate. That might be your spouse, adult kids, a parent, sibling, close friend, or trusted advisor. If you run a corporation, call it a board of directors. If you’re an LLC, call it a board of advisors. Advisors don’t run the company, they support it and offer perspective. And if there’s a family member you’d rather not take business advice from, that’s fine. Keep them on the invite list for the write-off, just don’t hand them the wheel.
Pick a date that becomes tradition. Print a one page agenda. Open with a quick review of the last year. Share a simple profit and loss snapshot. Talk wins, losses, and lessons. Set three goals for the next year with owners and dates. Close with housekeeping and signatures. Break bread together. Keep it human and keep it real.
List the date, time, location, and attendees. Record the short agenda and the key decisions. Note that the group adopted or reaffirmed your accountable plan policies. Add any board appointments or removals. Attach a one page budget or targets. Sign and store the minutes in your company book along with your operating agreement or bylaws, EIN letter, and ownership records. Do not file minutes with the state or the IRS. Keep them internal unless someone asks.
Do I need an LLC or corporation to do this?
If you operate through an entity, your minutes carry more legal weight. If you are still a sole proprietorship, you can meet and plan, but form the right entity so the formalities protect you.
How often should I meet?
Annually at a minimum. Quarterly if you want more accountability.
Can I pay board members?
Modest stipends are fine when documented. Reimburse travel and meeting costs under your accountable plan.
What if a lender or auditor asks for prior years?
Create current minutes and then prepare catch up minutes that summarize prior years. Be truthful and consistent with bank statements and tax returns.
A family board meeting is the simplest move most owners are not making. One meeting gives you deductions, protection, clearer decisions, and a stronger plan for the year ahead. If you want help drafting minutes, adopting accountable plan provisions, or keeping your company in good standing, book a call with KKOS Lawyers and my team will tailor the structure to your situation. If you prefer a done for you annual compliance package that tracks renewals and generates minutes, Main Street Business Services can take it off your plate so you can focus on growth.