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2023 Family Office Management Company


In 2023, families who have garnered substantial wealth can establish an office which collaborates with kin and family enterprises to offer financial services. This approach ensures that the expenses related to wealth management remain within the family domain. This concept is popularly known as a "family office."

Do I Qualify for the Family Office Management Company?

By setting up a family office management company in 2023, you have the opportunity to employ your relatives to deliver wealth management services to the family's existing businesses. This strategy not only allows you to compensate your kin for their services but also to deduct specific investment management expenditures rather than relying on an external entity.

2023 Family Office Management Company Details:

Families with considerable assets can find it advantageous to institute a family office management company. This entity can offer managerial and financial consultation services to family-owned holding and operational businesses and even to individual family members.

How Does a Family Office Management Company Work?

Such a company lets your family operate a managerial and financial consultancy service. This setup can generate income through managerial contracts with other family-run businesses. The income can be transformed into salaries, perks, and business expenditures for family members across different tax slabs. Essentially, some of the fees that your family might typically give to external consultants can now be redirected to a family subsidiary. This subsidiary can then employ family members who, in return for their services, receive salaries.

The family office management company can also be paired with other strategies, such as employing younger members and offering medical reimbursements.

Furthermore, this management company might be eligible to deduct certain investment management expenses, which individual family members might not be able to list in their personal tax returns.

Creating a legitimate family-centric management company demands significant effort. To avail the tax benefits of this strategy, the company should be established with the intent of earning profits. It should employ a full-time workforce that receives salaries and benefits. While this workforce can comprise family members, they must be actively engaged in the company's operations.


  • Opportunity to employ family members, ensuring that wealth management expenses remain within the family.

  • Potential to deduct certain investment management costs.

  • Additional advantages in wealth planning, such as wealth transfer to younger generations.

  • Potential for additional tax savings through other tax strategies.


  • Necessitates the initiation and management of a new business, which can be demanding.

  • Starting a new business entity implies additional documentation and tax returns.

Assumptions When Opting for the Family Office Management Company:

  • You possess a spouse who doesn't own another family business.

  • You're inclined to establish a distinct business entity, either as a Schedule C or a C corporation.

Requirements to Opt for the Family Office Management Company:

  • The family office management company should be an independent business entity, functioning continuously and professionally with the aim of generating profit.

  • All expenses should be allocated appropriately to the management company.

  • The family office management company must earn revenue from other businesses in return for the services it offers.

Conflicting Strategies:

  • Employing Children

  • Qualified Educational Assistance Program

  • Medical Reimbursement Plan

Business Entities That Can Utilize the Family Office Management Company:

  • Schedule C

  • Schedule F

  • S Corporation

  • C Corporation


In 2023, the concept of a Family Office Management Company continues to be a viable strategy for affluent families looking to centralize wealth management while availing tax benefits. By ensuring proper setup and adherence to regulations, families can make the most out of this structure, optimizing wealth distribution and management within the family circle. This approach not only fosters financial growth but also strengthens familial ties by encouraging collaborative financial management.

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