Legal Considerations

Good legal advice is invaluable, especially early in the process. We recommend you establish a relationship with a commercial law specialist, who can outline the legal implications of going into business, advise on risk and asset protection and other legal issues you may face.

In order to pay your business taxes, claim business expenses, open a bank account and trade legally, you need to choose a trading structure.

The three most popular forms of trading structures are:

Sole trader - you control, manage and own the business yourself
Partnership - you go into the business with another person (or people). This allows you to
share costs and overheads and combine different skills
Limited liability company - a company has its own legal status (like a person),which is separate from its share holders or owners. It is legally formed and includes the process of registering the company and issuing shares.

Each has different tax and legal implications, advantages and disadvantages and you should discuss your options more fully with your accountant and lawyer before making a final choice.

Premises

Location for some businesses is critical, e.g. if you’re a retail business, then where you are situated will be very important. Research the area where you intend to set up, and ask local business owners how they’re faring.
If you’re renting premises, ensure you understand what you’re signing and what it commits you to. Also understand how the rent review process works and what it can mean for your business. Always seek professional advice from your lawyer.

Subjects important here are:

Buying business premises
What to consider when buying your own premises, rules about alterations, and when to use a lawyer

Rent of business premises
How to find the right premises to fit your business needs

Responsibility of owners and tenants
How health and safety and maintenance duties are shared in commercial properties; duties of residential land lords

Planning and building permission
When a business may need planning consent, how to apply for it and key requirements for building work

Access and facilities for disabled people
Disabled people are an asset, and the law is removing barriers at work – take in account the implications for your business

Fire safety and risk assessment
Employers, the self-employed, the voluntary sector or owners of premises must identify and control fire risks

Protect your business from flooding
Effective flood planning controls the risks and costs of flooding. Patents,Copyrights and Trademarks

If you've created a new invention, it could be commercially advantageous to apply for a patent or copyright which may allow you to control how the invention is used.

Taking out a patent gives you the right to stop people from making, using, importing or selling your invention without your permission. A granted patent can remain in force for up to 20 years.

A patent also allows you to license others to use your invention - generating royalties, which can provide an important source of revenue for your business.

There are strict rules that determine what can and can't be patented, and a patent may not always be the best way for you to protect your invention. These laws protect your ideas, products and brand from being taken and used by other businesses, and stop someone using your ‘intellectual property’ without your permission.

Your should understand what a patent, copyright or trademark are and what they do, consider whether a patent copyright or trademark are right for you and find out how to apply for them.

We recommend you seek specialist advice from a lawyer or patent attorney with experience in this area. If you can not locate a suitable practitioner yourself, your usual lawyer or your Bancoii CRM can help you find someone locally.

Personal assets

Your lawyer can advise you on how you can protect your personal assets from the risks involved in your business. Please, see our wealth protection pages.