The Law Society have today published an article confirming what we have seen here at Fishers in the past few years, in that the number of inheritance disputes heard in the High Court has increased dramatically. It is suspected that the rise is due to...
Business Structures & Formations
Starting a business is an exciting time for all involved. It may have been many years in the planning, or a quick response to a time-sensitive opportunity. Whatever the situation, there is no escaping the need to carefully consider the formalities, not least the way in which your business should be structured.
You will have heard of the options, the most common of which include sole trader, partnership, limited company, and limited liability partnership. Each has its own characteristics which may or may not be right for your business. And while it is possible to alter a structure as a business develops over the years, it is important – legally and commercially – to set off on the right footing. Laying proper foundations will give your business its best chance of succeeding.
Fishers Solicitors’ team of company formation solicitors help clients understand what the different types of business structures mean. We’ll explain the requirements and implications of each in terms of liability, cost, and compliance, before helping you make your decision about which company formation best suits you and your business. With an eye on your longer-term plans, our company formation solicitors will ensure that your initial set-up will serve your purposes now, while also enabling your business to grow and adapt to the changing commercial world.
Our services include:
- Company formation
- Transferring your structure
- Partnership and limited liability partnership agreements
- Joint venture and shareholder agreements
- External/private equity investment
- Raising finance
If you are looking for advice on how your business should be structured, get in touch with our expert company formation solicitors in Tamworth or in Ashby de la Zouch today.
I’m new to the world of business. Will I be expected to understand everything my solicitor tells me?
No. A company formation solicitor worth their salt will take time to listen to you, to understand your circumstances, and to explain – in a way that makes sense to you – your options and the process of setting up a business.
Business formation is not straightforward; we recognise that. We also believe that it’s so important that clients are involved, on every level, in the legal work that we do. And that begins with good, effective communication.
We want to set up a family business. Will there be fewer formalities to go through than if we didn’t have that close relationship?
Setting up any sort of business, whether with a sibling or with a new acquaintance, will always be a significant step to take. It will involve risks, responsibilities, rules, and investment. And, that being so, you should get legal advice from a specialist company formation solicitor from the outset. They will help you choose the right business entity (limited company, partnership, for example), and advise you on the steps you should take to ensure that everyone involved in the business understands what is expected of them.
Some people fall into the trap of putting too much trust in the relationship that exists between them and their business partner. It’s understandable; friends and family members know each other well and may be confident that ‘everything will be fine’. But business relationships can turn personal relationships on their head. So it’s vital that you have proper company procedures and ground rules in place, including well-prepared agreements setting out each person’s role, responsibilities, financial commitment, and entitlements.
Our company formation solicitors frequently work with family businesses, and we understand the challenges that these can pose – including when it comes to clients having to address what may seem like overly formal requirements. But all business owners must have these conversations, and we help clients to do this in as straightforward a way as possible.
I have been a sole trader for many years. Would it be better to run my business as a limited company?
Perhaps, but not necessarily. You should speak with your accountant about whether or not tax savings could be made by incorporating your business (making it a limited company).
Aside from the potential financial benefits, a limited company has one key advantage over a sole trader set-up: because a limited company is its own legal entity, separate from you as its owner, your liability for the things the company does or doesn’t do is limited to the amount you have invested in it. This may be more important in some lines of work than in others, so it would be worth talking this through with one of our company formation solicitors to see if limiting your liability would be advantageous. They will also be able to advise you on the practicalities of running a limited company – the need for more extensive accountancy, for example – and on the way in which your business could be structured in order to fit with your longer-term plans.
Ultimately, there are pros and cons to each type of business structure and it’s really about finding the one that is the best fit for you, your actual and potential customers, and your objectives.
I have a name in mind for my new business. Would you be able to check that it would be fine for me to use?
Yes. It’s really important that your business name is sufficiently different from others that you will not be found to have copied, or to have created confusion between your business and another. Our company formation solicitors will be able to advise you on the associated risks and on choosing a name that would be safe to use.
Do you advise businesses of all sizes?
Yes. Our company formation team works with the very small, to the very large. Clients are based not just in Tamworth and Ashby but all over the UK, and sometimes overseas or with foreign subsidiaries.
Get in touch
For more information about any of our services or to book an appointment with one of our company formation solicitors, call your nearest office (Tamworth or Ashby) or complete the enquiry form, and a member of our team will be in touch.
- Charles Killin