The Legalities of Setting Up a New Business

13/08/2018 Off By Eden

The Legalities of Setting Up a New Business

Legal advice is always beneficial, but especially so when it comes to setting up a new business. From finances to the legalities of hiring people, there is an array of advice which you might require. Which is why, in many cases, it is best to get such advice before you actually need it. As chances are by the time you look for it naturally it might have already cost you a great deal of money.

So, what areas can a solicitor be an invaluable aid when setting up a new business?

Writing a Business Plan

A business plan is one of the biggest necessities when it comes to starting a new business from scratch. After all, this is the document which will outline your initial road to success and it will continue to grow and adapt as your business does. Failing to create a structured, realistic, business plan can cause any number of issues for your business – perhaps not today, but certainly tomorrow.

Once you have all the details of a business plan in place – a rundown of which you can find here – you will need a legal professional to look over it to ensure it covers you in the case of various legal issues. At the end of the day, your business plan needs to be ironclad and a legal expert can help this happen.

Name Choosing

Though it may sound extremely simple, choosing a name for your business can actually be wrapped up in many legal issues. If you fail to comply to a number of legal naming conventions you could find yourself at the heart of some very serious legal issues. These conventions often include:

  • It is not offensive.
  • It does not contain a sensitive word or have any connotation that it is connected with a government body or local authority.
  • Be the same as or too similar to an already existing business or company. This does not apply if you are a sole trader using your own name or if the business will exist in the same group as an already existing business.
  • Do not include mention of being accredited.
  • Be the same as an existing registered trademark.
  • Include misleading titles. For example, you cannot label yourself as ‘limited’ or ‘ltd’ if you are a sole trader, etc.

Although you don’t need specific advice for choosing a business name, as you can simply check the Companies House Register, it can be valuable if you want to protect this name. For example, commercial law Manchester experts can help to ensure that you do not accidentally choose a name that will get your business in trouble or in legal straits later down the line. Which is key to ensure the long-term success of your business.

Structuring Your Business

The way that you choose to structure your business can have long lasting effects on the overall enterprise. Typically, you will be choosing between a limited company or a limited liability partnership structure. However, in most cases you may need dedicated legal advice in order to determine the final configuration of that structure. Drafted agreements may also be necessary to ensure that all involved understand and agree to their various liabilities and responsibilities within the company structure.

Once you have a proper, legal, structure for your business you will need to actually register it. Of course, this stage does not require legal assistance and is fairly straightforward. You simply have to inform the Companies House the name and structure of your business, as well as pay the registration fee.

Employment

For any business, often the product or service you provide is only as good as the people doing the work. As such, you will want to ensure that your company is in a position to hire the  best talent from day one. Often, this means ensuring you have the right kind of employment contract and employee structure in place from day one. Without the help of corporate solicitors you could find yourself with poorly drawn up employee contracts, which may or may not leave your business open to further issues down the line.

Overall, there are many instances where legal advice can be invaluable to your business and help you move forward. In order to be successful, you have to invest in this legal counsel early and take the advice seriously. Failing to do so could put your business in danger later down the line.