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Starting Up A Business?

Post by Admin , Apr 07, 2017.
Business Consultancy

When you are investing all your time, sweat, tears and savings into a new business venture and getting little in return - save for an adrenalin rush and increased debt - you don’t want to be grouped with the vast majority of start-ups that fail within the first 5 years.

To ensure this doesn’t happen we’ve compiled a list of things to consider and implement before you are full operational as a business.

Your Business Legal Structure: 
◾Company – Limited companies are legal entitles in their own right.  As a director and/or shareholder of the Company, your liability is limited to the capital you put into it (unless you give a director or personal Guarantee, then you liability will increase).   
All limited Companies have to be registered with Companies House.  The Directors are bound by strict legal obligations, such as filing audited accounts.  

◾Partnership – you and your partners are personally responsible for debts and obligations.  They are not required to prepare formal documents, namely accounts, but most partners see the benefit of doing so.   You pay tax on your drawing.  
◾Sole trade – is the simplest form of setting up in business.  A sole trader makes all the decisions and runs the business however, is also solely responsible for all debts, liabilities and obligations.   

Insurance: 

Research what insurance you need in place, examples include; Employment Liability Insurance, Public Liability Insurance, Professional Indemnity Insurance, Equipment /Asset Insurance.   

Banking, Tax & Accountancy: 
◾Open a bank account. 
◾You will need a payroll system if you are employing staff.
◾Register for VAT registration – It’s a legal requirement to register for VAT with HM Revenue and Customers if your businesses VAT taxable turnover is more than £83,000. 
◾Decide how you will deal with invoicing your customers – do you need a cashier?  

Legal Documentation: 

Terms of Business
Before you commence taking on obligations such a providing goods and services, you must have your terms clearly drafted so your business is protected. They therefore act as a legal business contract between you and your customer. It is essential that you regularly review your Terms and Conditions. If they aren’t working for your business, if they are too complicated for your customers to understand or if there has been legislation or regulatory changes in the law – amend your T&C!

Employment & Consultancy Contracts
Do not fall into the trap of thinking because you are giving a friend a job /role in your new business your friendship will be unaffected. Protect your friendship, and your business, by clearly setting out what the obligations are for both parties. These are the bare minimum any new business needs to have in place before it starts touting for business and employing personnel.  

Statutory Obligations
Seek advice on any legal; policy documents, or procedures you need in place and if there are any bodies you need to register with, for example – Date Protection/Information Commissioners Office. 

Protect Your Brand 
Your intellectual property includes the name of your products or brand, inventions, designs along with any written text and photographic images. Take steps to protect your intellectual property by registering trademarks and copying your creative work.

To get expert Legal Advice on Business Start-ups, Employment Law or Business Terms and Conditions give us a call or submit an online enquiry.



Disclaimer
 This blog does not constitute legal advice and is provided for general information purposes only. To obtain legal services from Walker Thomas Solicitors you must first establish a solicitor -client relationship with the firm. No warranty, whether expressed or implied is given. We shall not be liable for any technical, editorial, typographical or other errors or omissions within the information provided in this blog. See our website Terms and Conditions for more information.