When starting a new business, it is sensible to talk to experienced business solicitors early on so that you are prepared for any legal problems that might crop up.
Developing a longstanding relationship with specialist business solicitors can prove extremely beneficial; your chosen solicitors are involved from the company's creation and knows much of the relevant information needed if a legal problem were to arise. This relationship will save you a lot of money and time in the future by preventing you from having to independently instruct different legal representation.
The following are some legal considerations you must make when creating your business:
1. Whether or not to create a 'Company' registered at Companies House
When you start a business it must take a legal form, you will either be acting as a sole-trader, as a partnership, a limited liability partnership or a company. Your solicitors will be able to advise you on the legal implications of each of these forms, including their pros and cons such as liability towards debtors and tax. The solicitors will then be able to draft the appropriate documentation, whether this is a partnership agreement or articles of association.
2. Designing terms and conditions for your trade
Creating comprehensive terms and conditions are vital to conducting safe business. T&Cs provide information such as when consumers have to pay for their goods and if they do not pay what rate of interest will be charged on their invoice. Often people do not appreciate the importance of T&Cs governing sales and contracts, however having a thorough set of T&Cs can prevent disputes in the future. An experienced solicitor will be able to draw these up with you.
3. Business Contracts.
Simple business agreements are normally arranged through correspondence between the parties involved. You should always, however, speak to your business solicitors when you are entering into a high value and/or complex commercial contract. In doing so it will ensure that you are adequately protected.
4. Business Leases.
Commercial leases can be very complex with numerous provisions. When entering a commerical lease, ask an experienced commercial property solicitor to draw it up. They can make sure that clauses covering rent review, repair and forfeiture are included in the agreement.
5. Debt Recovery
This is a common problem faced by business owners. Especially in light of the current financial crisis, having an efficient and effective debt recovery plan can save your company lots of money. A specialist debt-recovery solicitor can chase outstanding debts on your behalf whilst you continue to run your everyday business.
6. Employment Law.
Employment law is a vastly developing area with employee's becoming more conscious of their legal and contractual rights. It is crucial as an employer that you have a basic grasp of employment law. Nevertheless, when it comes to designing your employment contracts and developing a legal disciplinary procedure you should consult the services of an experienced employment law solicitor. If you use legal services to help address all of the above issues, your business will have the best grounding in which to become a success.
Sadly, most new businesses are forced to close within a year of starting up. Prevent this from happening by ensuring that you do everything properly at the start and employ specialist business solicitors to help you create the right foundations for your business.