Managerial challenges- lend a hand!? i have one full time employee- my 22 yr. mature sister.

i have one full time employee- my 22 yr. mature sister. She absolutely drives me crazy.
I am aware of the inherent challeges of have family work for you as I used to work for my father but?
There have to be a way to bar this better.
She's always unsettled, takes breaks whenever she desires, cannot take any critique or counsel regardless of how it's presented, and gives the product away for free after I've told her not too.

Now at one time she worked for me for free for two months out of the integrity of her heart and she has a big one. She be there surrounded by the beginning and give me a lot of moral support when not a soul else did.
I do want to work this out- I get nutty thinking about the passageway she disrespects me (some of the time) and every time I try to talk to her she get defensive- I react poorly and we draw from in a scrap. Help

Answers:
This is too tough a situation to respond in detail. But, I will narrate you this: You have to control your reaction, when any employee get defensive (related or not) you own to keep your cool and remain focused on the problems you are communicating and not the emotion of the moment. Responding in quality to outbursts, etc. is a sure-fire way to be not taken seriously and to escilate the argument.

But try to ask question. Why are you inconsistent/late? There may be something going on that you can work out. The next time she give something away charge her for it.

Also, always be clear that you love your sister no event what happens but that she also requests to cooperate if you have to work together if not it may not be the best set-up for both of you.