When most people hear the term “family office,” they imagine billionaires with private jets, private investment advisors, and fancy offices. But guess what? You already have a family office — it might just be the third bedroom down the hall with a hide-a-bed in it.
And that’s more than enough to start building serious tax savings, asset protection, and wealth.
A family office isn’t reserved for the ultra-wealthy. It’s a simple, powerful system that anyone can set up to take control of their finances, maximize deductions, and strengthen their legacy.
Here’s how we recommend you set up your family office — and why you’ll love having one.
What Is a Family Office (Really)?
Let’s get one thing clear: a family office isn’t just for people with $100 million.
A family office is simply your own board of advisors — your spouse, your kids, your parents, or even your best friend. It’s your personal team, helping you make better financial decisions and building your business with you.
The best part? Setting up a family office is easy, affordable, and loaded with benefits if you follow a few simple steps.
The Four Steps to Setting Up Your Family Office
Here’s the process I follow and recommend:
1. Set Up the Right Tax and Legal Structure
Your family office needs a strong foundation. We use what’s known as the Trifecta:
- A revocable living trust
- Your 1040 tax return at the core
- An operations/assets split between your businesses and investments
This structure gives you better protection, easier tax planning, and sets you up for generational wealth.
2. Clean Up Your Entity Documents
If you filed an LLC online years ago and never touched it again, it’s time for an upgrade.
A real business needs proper documents — operating agreements, resolutions, and minutes — to be legitimate. Cleaning up your legal docs isn’t expensive, but it’s crucial for asset protection and tax legitimacy.
3. Create a Written Plan and Vision
You can’t run a board meeting without a game plan. We encourage everyone to write down a clear plan:
- A 10-year vision
- A 5-year goal
- A 1-year strategy
Even a simple document gives your board meetings direction and helps your family office make better decisions.
4. Hold Regular Board Meetings
This is where the magic happens.
Hold at least two board meetings a year — and yes, you can combine them with vacations.
Bring in your family, your close advisors, and have real conversations about your business, your finances, and your goals.
You can even write off the travel, dining, and lodging if you properly document the meeting!
It’s a win-win: better financial management and stronger family ties.
Why Regular Board Meetings Matter
Besides the obvious tax benefits, regular board meetings help you:
- Legitimize your entity (important if you’re ever audited or sued)
- Improve your financial organization and goal setting
- Build stronger relationships and teach financial literacy to your family
Every time I hold a board meeting, whether in person or over Zoom, it’s a chance to celebrate wins, review financials, and create new momentum.
Check out our blog: “How to Use a Board of Directors or Advisors” for more details.
Take Action: Build Your Family Office This Month
Setting up a family office isn’t hard — it just takes a little planning.
You can have your structure, plan, and first board meeting ready by this time next month (or sooner!).
- Set up the right legal structure
- Clean up your entity documents
- Write down your vision
- Schedule and hold your first board meeting
If you’re already running a business, investing, or even managing a side hustle, you owe it to yourself (and your family) to take this step.
It’s not about being fancy — it’s about being smart.
FAQs
Do I need to form a new LLC or corporation to have a family office?
Not necessarily.
You can use your existing business entity (like an LLC or S corporation) as the foundation of your family office — if it’s properly structured and maintained. However, if your current entity is outdated, incomplete, or mixed with personal activities, it may make sense to create a new, clean entity focused specifically on family office functions.
Who should be on my family office board?
Your board can include anyone you trust — family members, close friends, or even mentors.
Typical board members include:
- Spouse or partner
- Adult children
- Parents or siblings
- Trusted advisors (like an accountant or attorney)
The key is that board members should be people who can offer advice, oversight, or accountability in your financial and business matters.
What should I talk about in a family office board meeting?
A family office board meeting isn’t just a formality — it’s a real working session. Topics to cover can include:
- Reviewing financial statements (profit/loss, balance sheets)
- Discussing business goals and performance
- Planning major purchases or investments
- Succession planning
- Brainstorming new strategies
- Reviewing and updating the written family financial plan
Even a 30-minute meeting with real discussion and documented minutes counts.
How do I document my family office meetings properly?
Documentation is simple but crucial.
For each meeting, create:
- An agenda (a list of topics you plan to discuss)
- Meeting minutes (a written summary of what was discussed and any decisions made)
- Attendance list (who participated, even if remotely via Zoom)
These documents should be saved with your business records to legitimize your deductions and entity compliance.
Want to grow your business and keep more of what you earn?
The Main Street Tax Advisor Network helps business owners like you find certified, vetted professionals trained by Mark J. Kohler to deliver real tax-saving strategies.
Browse over 1,000 trusted advisors—all ready to help you reduce your tax burden and reinvest in your growth.
Free to search. Easy to connect. Built for entrepreneurs.
Ready to save more and scale smarter in 2025?
The Trifecta Planner is a business owner’s blueprint for:
- Bulletproof compliance
- Aggressive tax savings
- Long-term wealth strategy
Don’t forget to Download your FREE Tax Guide with 30+ money-saving tips to take control of your finances today.
Build your business like you mean it—with tax strategy at the core.
Want to help business owners win at tax strategy?
Grow your advisory practice and deliver real value as a Main Street Certified Advisor—trained by Mark J. Kohler.
Call 520-800-0986 or schedule your FREE Discovery Call to learn more about certification.
Nice overview.