If I interned or worked for a company my parents run, would this look bad? I would still be doing real work and I would exaggerate any roles or results of the company, but being able to intern at a company my parents run help? I also would likely not specify it was my parents company unless asked. Regardless of college benefits, I will likely intern/work for them anyways.
Our S put up a website for my nonprofit and listed me as his supervisor, since I am the Executive Director of the company. It was one of hang things he had done. When they did a security check of all his prior employers, they did contact me and I explained the circumstances and said he did a great job of creating the website, which he did and they could see.
If you have other nonfamily opportunities and experiences, it’s ok. If that will be your ONLY experience, it’s not as strong as if you work or even volunteer for non-family, in my opinion. Exaggerating roles is always a bad idea–accurately stating them will provide a better picture of what your experience is.