Choose the right legal structure
Whether you are planning to trade alone, as a partnership or as a limited company, your legal structure should always reflect and support your business plans while being as tax efficient as possible.
Decide how to fund your business
Debt finance will cost you interest, impact on cash flow and you may be required to provide security. Equity finance will cost you shares and ownership in the business.
Understand the relevant laws
Complying with the necessary regulations may add to the cost of running your business and should feed into your business plan.
Establish ways of working
Discussion with business partners up front will help avoid any potentially awkward issues later on. This should be documented in a partnership agreement in the case of partnerships, or in the case of a company, in the Articles of Association and/or a shareholders agreement.
Ensure contracts are clear and unambiguous
Contracts should be in writing and have clear terms. Consider standard terms or template agreements for contracts you regularly enter into. Review other party’s terms carefully, ensure you understand your obligations and liabilities, and take legal advice if necessary.