When you start up a business (rather than buying one), you probably feel that the last place to spend money is with your lawyer. You are probably right.  You need to get on with it and conserve your money.

The exception to this rule is if you intend to lease premises.  A lease is another expense that is best to avoid.  But if you absolutely must, then do not enter into a lease without a lawyer’s advice, as you could find yourself making a commitment which is far deeper than you realise.

Deciding on a company structure is one thing that looks like a legal decision, but usually it is a question of what is the most tax effective vehicle. Your accountant will help you with this.

When you start, often you are a sole trader (alone), possibly using an easy to obtain trading name.  The other choices are a partnership (two or more people), a trust, or a “Limited” company.  Be guided by your accountant. However, the easiest vehicle from a legal point of view is the “Limited” company.

Once you have started a business and it looks like it will be a success, then you will need your lawyer to protect your assets and reduce your risk.

Here are 5 topics that successful business people discuss with their lawyers:

1.    Shareholders/partnership agreement.

2.    Contract terms and conditions.

3.    Consultancy agreement for any consultants using your ideas.                                        

4.    Asset protection.

5.    Intellectual Property protection.

Two things that you could do before you start a business are:

·             move your assets into your spouse's name; and then

·             try to keep your spouse’s “official” involvement in the business minimal (e.g. being director or guarantor). 

People starting businesses need to listen to their accountant. This is just one of the many challenges you will face!

© Paul.Brennan 2016. All rights reserved.  

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