Common Mistakes When Setting Up a Business
You want independence. Your own company. You’ve dreamed about it forever. Now the time is right, your business plan is taking shape and there’s a million things running through your mind. The last thing you need is for some overlooked legal requirement to reveal itself later and trip you up somehow, particularly if it was something a lawyer could have spotted. As a result, we’ve put together a list of our most common mistakes that can happen when you set up a business.
Picking the Wrong Business Structure
There are many different ways to run a business. The average small business may be better off operating as a sole trader rather than operating through a limited company. It may be good to have a limited company (particularly if you are working with other people) but there are additional reporting and accounting responsibilities which must be undertaken when you run a company, all of which would increase your costs.
The type of business structure you choose affects how you conduct your business and how the business is taxed. Doing your homework and taking specialist advice from QualitySolicitors Bradbury Roberts & Raby will help you understand your options and pick the business structure which is best for you. Starting a business is one of the most exciting times in anyone’s life, and we’re sure you’ll sleep a little better knowing that you have had advice about all the legal possibilities.
Not Getting the Right Professional Advice
Getting the right advisers on board at the outset can be a huge competitive advantage. As well as giving advice on set up, the right team can add real value not just in pre-empting issues but also in proactively advising on how to resolve them.
Professionals used to acting in this area will be an excellent sounding block as to what works and what doesn’t. Where a business has no track record, entrepreneurs are often judged on the quality of their professional team so take time to shop around and find the right team for you
Choosing the Wrong Company Address
The company address is more important than you think. It’s where official communications between the UK government and you will be sent. It doesn’t have to be the offices you are operating out of. You can use your home address. The only restrictions are that it must be in the company’s home country, and it has to be a physical address; so, you can’t use virtual addresses.
What a lot of people don’t realise is that this address (and a lot of other information) is available to the general public via Companies House. Make sure you are comfortable with this before choosing your home address.
Leaving the Legal Advice to The Last Minute
It’s really tempting to try and cut costs when starting a company, you can often see lawyers’ fees as an unnecessary cost to be deferred.
That view can often be short-sighted, as issues that may have taken an hour to address at the outset can take several days to unpick later on. For example, if you have a commercial property, your business will rely upon it to trade. It may be a café, shop, pub, office or warehouse – whatever it is, it needs to be cared for. Buying, selling, leasing or just working from a commercial property is different to a domestic one. Issues that arise are unlikely to be part of a normal conveyance. That’s why we have specialist lawyers that understand commercial property transactions. What remains unchanged is the need to conduct the correct searches, negotiate contracts and resolve issues.
Lawyers don’t have to cost the earth and finding the right adviser at the outset will pay dividends in the long run. If you are looking for advice on the legal side of starting a new business, why not start by calling QualitySolicitors Bradbury Roberts & Raby to discuss your plans with one of our legal assistants. You can then book an “Ask the Legal Expert” meeting and benefit from a 45-minute session of legal advice on your particular situation and plans – for only £120 inc VAT (20%).
If you want to know how our business law expertise can work in your favour, then contact us on 01724 854 000, or request a callback.