This is a very YMMV post. Everyone's family/friend situation is different, as is the type of business you're heading into.
Personally I'd rather befriend those that I work with to avoid mixing contexts. But then again I'm very particular about the way I conduct my business and how I get things done. Ultimately when you hire friends and family, you're bringing the social contracts into a different atmosphere. If I hire a friend as a programmer, I'm somewhat socially obligated to listen to his advice about taxes, whereas I have no obligations to a stranger that I hire for that purpose. The absolute worst thing is to ask your significant other for advice on a topic that they know little about, then having to pretend that you're considering it.
I disagree, this is a 'I haven't been in a car wreck so I see no value in seat belts' kind of story.
Friends is one thing, family is another. There is a reason every single HR boiler plate policies binder has a section which prohibits members of the same family from having a reporting relationship with each other.
Personally I'd rather befriend those that I work with to avoid mixing contexts. But then again I'm very particular about the way I conduct my business and how I get things done. Ultimately when you hire friends and family, you're bringing the social contracts into a different atmosphere. If I hire a friend as a programmer, I'm somewhat socially obligated to listen to his advice about taxes, whereas I have no obligations to a stranger that I hire for that purpose. The absolute worst thing is to ask your significant other for advice on a topic that they know little about, then having to pretend that you're considering it.