Nath Solicitors helps businesses
get off the ground. We work with SMEs, owner-managed enterprises and larger
companies in London and elsewhere providing legal advice when it’s needed most.
We have provided support to many of our clients from their inception, helping
to foster growth and consolidate their market positions with robust and
practical legal solutions. Here are five things you should think about
from a legal perspective when you are starting a new business.
Get the structure right – Choosing the right legal structure for
your start-up is crucial. It will determine the way you pay taxes, buy and sell
services and outline the responsibilities of key individuals within the
organisation. Generally businesses begin life as one of the following:
·
A
sole trader
·
A
partnership
·
A
limited company
·
A
limited liability partnership
Before deciding which structure
is best for your business you should think about how much control you want to
have over the running of the business, what legal liability you are willing to
shoulder, administration costs and how flexible you want the management of the
business to be.
2. Protect your assets – With new businesses your ideas and the
way you approach things are often your most valuable asset. It is essential to
proactively protect your intellectual property and other commercial assets.
This means registering trademarks where appropriate and monitoring what others,
including your competitors are doing. When you buy something from a third party
ensure you are also purchasing any copyright or other rights over it. You
should also have systems in place to act quickly if a third party infringes
your rights.
3. Put agreements in writing – It may be tempting to undertake work
or provide services on an informal basis when starting out. All business is
welcome of course. But our experience as commercial contract solicitors over
many years has shown the dangers business expose themselves to when not
recording responsibilities and obligations in a contract of some kind.
4. Have a comprehensive shareholder or other
agreement – Whether
you are starting a limited company or your business is structured in some other
way a comprehensive agreement is essential. This might be a shareholder
agreement, a partnership agreement or some kind of joint venture document. Even
though it’s hard to envisage disputes when you are starting out, they do
happen. And the can be hugely damaging to your commercial interests and
day-to-day operations. A shareholder agreement will set out what happens when
there is a disagreement. It may also reduce the potential for dispute because
it will specify how you and your fellow directors or partners will take
decisions and manage the business. For companies, an agreement can also
determine how and when shares can be sold and include built-in protections for
different classes of shareholder. It also shows outsiders and potential
investors that you are a well-run enterprise that has planned for the future.
5. Find professional advisors you can trust
– We believe
that businesses supported by expert professionals have a competitive edge. It
might involve an investment in terms of fees. But it is a sensible move.
Trusted lawyers, accountants and tax specialists that understand your business
can provide invaluable support and guidance when the unexpected happens. They
can also ensure you meet your legal responsibilities and are compliant with
relevant regulations in areas like employment and data security.
When
starting a new business it’s easy to rush headlong into it without considering
the legal implications of how you are going to run things in the long term.
There is a lot to be gained from standing back, getting the right advice and
putting your business on a sound legal footing – from the beginning. For more
information you can contact Nath Solicitors - business solicitors or call us on + 44 203 670 5540 +44
(0) 7545 813 894.
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