The Legal Aspects of Setting Up and Managing a Company

The subject of law has many faces, and for those who wish to formulate a company, there are legal steps that must be taken, and prior to that, the person or persons who are to set up the company need to consider the type of company they would like to register. It might be a sole concern, or a partnership, or even a group of likeminded people who wish to pool their resources, and this is the time to seek the advice of an experienced business lawyer.

The Nature and Size of the Business

These are contributing factors in company formation, along with personal liability, and whatever direction you choose, there will be a set of governing rules that govern aspects of the business, so it is essential to select the most appropriate business type. Many people prefer their company to be limited, which means that in the event the company were to be declared bankrupt, the owner’s liability would be limited to a specific amount. If you required a business solicitor in London, for example, an online search would be the best way to source an experienced legal firm, and one that specialises in company formation.

Partnerships

More often than not, two people join forces, and typically, each would have experience in one discipline, and together, they have the knowledge, skill and experience to create a company. One might be very practical and understands the shop floor side of the business, while the other partner excels at sales and marketing, and between them, they have the foundations for a potentially profitable concern. One thing the two partners need to do is sit down and draft a working agreement that will define their involvement, including tasks and responsibilities, and that is something a business lawyer can help with. It is essential that both parties are happy with this agreement, as it defines their business relationship from there on in.

Limited Company Formation

Many individuals prefer to limit their liabilities when setting up a business, which, of course, has a large element of risk involved. A sole trader, for example, might want to risk losing their house, should the business fold, and with a limited company, one can decide just how much liability to take on. This could also be the case with a partnership, or even a group of people, and by using the services of an experienced business lawyer, everything can be arranged to all parties’ satisfaction.

Structuring the Company

Looking ahead, there are several directions the business could take, and with the right advice, things can be in place at the very outset, and the lawyer can make all the necessary applications to ensure the company will get the maximum benefit from the structure. The legal expert can also assist in drawing up employment contracts and advising about the responsibilities of an employer, making sure you do not break the law.

If you think you will require the services of a lawyer to help you set up a business, an online search will certainly be a good place to start. It is advisable to enlist the help of an experienced business solicitor from the very start, and he or she can help you to create the ideal shell that will allow the company to grow unhindered.

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