subject: Starting out in Business [print this page] Starting out in Business Starting out in Business
There can many reasons for starting out in business. There is a saying that when one door closes, another opens. Some businesses are started following a redundancy, in other cases the motive is the drive to do something different or to be the master of your own destiny. Whenever a new business is formed, there are legal questions to be considered and understood. Lawyers specialising in business services can make finding the right answers to these legal questions easier.
What is the best form of business entity to use? Is it a partnership, a limited company or a limited liability partnership or perhaps you should set up as a sole trader? The answer will depend on your particular circumstances and your attitude to risk. Starting in business as a sole trader is the simplest option but it means your personal wealth is at risk to creditors of the business.
A limited company or a limited liability partnership will enable you to protect your personal assets from claims from trade creditors; but these raise more complicated questions such as tax or how the entities will make decisions. You will need the help of professional advisers such as solicitors in order to get the business off to the best start. You should look for solicitors with experience of business services, joint ventures and partnerships with a particular interest in new enterprises or start up companies.
If you are thinking of going into business with someone, a written agreement is vitally important. The process of preparing the agreement is useful in itself allowing both sides to communicate what they are expecting from the other. This means that things are already less likely to go wrong. If things do then go wrong, the agreement will provide the starting point for trying to resolve matters.
A good firm of commercial solicitors will also be able to simplify the legal issues relating to employment contracts and handbooks, help you setting up proper policies and procedures, deal with the important commercial and supply agreements and deal with banking facility agreements, borrowings and secured lending and investment and shareholder agreements on your behalf. It is better to tackle these legal issues with the help of good professional legal advice and free up your time to deal with the difficult task of building your business.
Working with new businesses is an exciting opportunity, and the costs do not have to be terribly high. Some solicitors will offer incentivised rates for new businesses, hoping that your new company might be the next Virgin Group or Microsoft and that working alongside you will help their business to grow with you.
Go online to get in touch with West End Solicitors who specialise in business services and commercial contract and employment contract issues
