Contemporary issues of legal regulation of family business and its role in the national economic security

Economic security is a fundamental component of national security ensuring the protection of the national and individual economic interests. The state is a coordinator of economic security that shall create favorable conditions for business development and socio-economic growth. Family business as a type of small and medium business makes a significant contribution to the development of the national economy and its sustainability. However, its effective operations require a dialog between government and business and eliminating defects in their communication systems. Considered the legal and economic aspects of family business development as a key element of the economic security of Russia and to develop proposals to improve state regulation and support for this type of business based on its special attributes, including legal, tax, and social aspects. The state shall regulate and incentivize small and medium businesses, including family-owned ones. Family businesses need additional legal regulation to enable legal business development, as well as incentives and tax benefits provided by the state. Legal regulation of family business shall consider special attributes of this type of activity based on family relationships and business inheritance. Simplifying employment processes, reducing tax obligations and providing tax benefits will contribute to the development of family business and strengthening Russia’s economic security.