Earlier this week, I talked with a business owner who shared her regret about not incorporating her business. She continues to trade under her own name, which, while perfectly legal, can lead to higher taxes and expose personal assets to business liabilities.
Many simple actions can significantly benefit your business or personal affairs. Often, picking up the phone and consulting with your solicitor can point you in the right direction.
This business owner had assumed that incorporating her business would be costly and complicated. She was surprised when I told her she could do it online in 10 minutes with a debit card to pay the £13 fee.
There are numerous advantages to incorporating a business, though it might only be suitable for some. One key benefit is the protection of personal assets from business debts. When trading as an individual, your money and property could be at risk if your business incurs debts it cannot pay. The current tax system (just about) also favours limited companies, though tax policies can change with government shifts.
This post is about something other than the pros and cons of different business structures. Instead, it’s about knowing where to start when faced with a business-related issue.
One of the best ad campaigns by the Law Society was “ASK – a solicitor knows.” This is excellent advice, provided the solicitor you consult is knowledgeable in the area you need assistance with.
Whether it’s business structure, leases, employment contracts, or supplier/customer agreements, a solicitor can ensure you have a solid foundation for business success. For private matters, having a will, power of attorney, and a clear understanding of asset ownership can cover most needs in 90% of cases.
In conclusion, don’t hesitate to seek professional advice. It can save you time, money, and stress, and provide peace of mind that your business and personal affairs are well-managed.