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Is it a bad idea to have a LOR from a family member even if one works with them daily at the family business and they have two LORs from outside the family business?

edit: detail removed. consensus at time of edit seems to be yes.

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No on family letters.

Best-case scenario: the letter is great and the adcomms ignore it, because it's from a family member.

Worst-case scenario: the letter actually isn't that good, and the adcomms wonder just how terrible a person you have to be to piss off your immediate family this much.

Fair enough, and I agree. I'm going to remove some of the detail but leave it up in case any other applicants from family businesses have a similar question down the line.

I appreciate the responses to avoid second guessing myself.

An LOR should never come from your family - whether immediate or extended. Even if your uncle is a senator of your state - Don't do it