Status as a sole trader offers flexibility, however it does not offer personal protection from any potential losses and factors such as VAT registry which can still affect sole traders. However, you are able to keep all profits that you earn after paying tax and therefore this type of setup can suit a business with small overheads that does not rely upon large cash reserves. We can advise you on whether your business plan would fit this type of arrangement, and on the particular risks and obligations associated with any contracts or arrangements that you may enter into – as a sole trader you will be personally responsible for these.
Going into business with a partner sets out a different series of requirements to setting up a business on your own. Getting expert advice early on will help to put the right agreements in place from the start, which is critical if there are ever disputes. We work with businesses set up as standard partnerships and as limited liability partnerships and will offer you our advice if one or the other would better suit you and your business.
Forming a limited company can offer increased credibility and can reduce the risk of personal financial loss. There are several types of limited company but most are limited by shares. Forming a limited company involves the creation and allocation of shares as well as the incorporation and registration of your business. Directors and shareholders are often governed by formalised agreements which lay the foundations for business activity and the level of interaction that shareholders have with the business. In addition to Shareholder Agreements, we also offer assistance in drafting Director Service Agreements to ensure that legal contracts are in place at all levels necessary.
In addition to offering guidance on the constitution of new commercial operations, we are also highly experienced in advising on and preparing agreements relating to joint venture between established businesses, no matter the size or scope of the project.