Business Start Up & Business Restructure
So, you’ve decided to start your own business. You’ll currently be filled with excitement and apprehension. Walker Rose Solicitors is here to reduce the latter and hopefully revile in the excitement with you!
The first decision you’ll have to make is to decide on the legal structure your business. There are 4 main legal structures to consider:
- Sole Trader: You are your business! You start trading in your own name or under a ‘trading as’ name. This is the most straight-forward, quickest ‘start up’ entity. However, there is no legal distinction between your personal and your ‘business’ assets – a major consideration as one of your business creditors can enforce a business debt against your personal assets, including your family home.
- Partnership: this is a commercial relationship between 2 or more people who carry on business with the view to earning a profit. It is not a separate legal entity (such as a company) and the partners that are in partnership together are personally liable for the debts of the partnership. Although there is no legal requirement, it is sensible to enter into a partnership agreement in advance. This agreement would address the partnership’s business, how it is managed, distribution of profits and what happens if and when a partner decides to leave. This business entity is governed by the Partnership Act, in the absence of a Partnership Agreement.
- Company: this the most common form of business vehicle in the UK. Companies are formed by registering them with the Registrar of Companies at Companies House. There are three types of companies; limited, unlimited and public companies. Most companies are limited companies which are limited by shares. If a company goes into liquidated, the shareholders’ liability is limited to the amount paid for the shares therefore offers the most protection to the business owner/shareholder.
- Limited Liability Partnership (“LLP”): if you want the protection of a limited company but the flexibility of a partnership agreement then a LLP is an alternative. The LLP is a legal entity separate from that of the partners. The partners are not liable for the debts of the LLP.
It can be extremely daunting venturing into the unknown. Before making the decision on how you will commence your business venture contact Walker Rose Solicitors for expert advice and discuss the key considerations you need to be aware of to ensure you are properly structured for growth, profitability and protection.
Walker Rose Solicitors provides astute legal advice and the drafting of legal agreements, polices and documents to address your immediate and on-going business needs.
We can assist, negotiate and draft agreement terms with the co-founders, investors, employees, suppliers and customers.
We can assist whether you are a new start-up or an established business. We work for you to design ‘best practice’ doctrines ensuring and securing a smooth running and efficient workplace.
Walker Rose Solicitors provide sensible commercial legal advice and draft the agreements you need in place to reduce areas of dispute or at least provide a mechanism for the parties to resolve a dispute. We can help you grow and evolve safe in the knowledge that you, your business and your brand are protected and stand on a strong legal ground to move forward.
Our advice is always precise, resilient and affordable.
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Our mission is to provide businesses, and their owners, with quality legal assistance in the most cost effective way.