4 Top Protections For Your Business
In my view there are four big documents that are essential to helping protect your business, and that I would strongly recommend to any and all business owners. None of them are mandated by law, but they are all extremely helpful, and I am always surprised by how few business have them in place.
If the business is just starting off it may be advisable to prepare these documents in stages, but by the time your business is well underway I would be concerned if you did not have these protections:
- Terms and Conditions – The document that sets out in detail the specific terms on which your customers or clients are using your services or buying your products.
As the entity supplying the services or products you are in a position to take charge and lay out in advance the terms on which you do business with the public. Take advantage of that position. People can sometimes be put off by the size of the documents, but it can be be tailored in many ways, so need not necessarily be a 20-page size-4-font slab of paperwork!
- Wills – Wills are an essential recommendation for everyone, but especially business owners. Upon your passing your estate (including your interest in your business) may not necessarily pass as you think, or to whom you want.
It is very easy to keep overlooking Wills, or saying that you will come back round to them later. Don’t fall into the trap! These are vital documents. Not only can they protect your business interest, but also save you on tax, and prevent nasty challenges from potential beneficiaries.
- Powers of Attorney – Like Wills, these documents are far too often overlooked, and always seem to end up at the bottom of your ‘to do’ list. Please don’t let this happen.
If something were to happen to you then you need in place the paperwork that will allow someone to act in your stead in both your personal and business life.
- Partnership Agreement / Shareholders Agreement – If you are in business with someone else then you are deemed automatically to be in a Partnership business. Unless you put in place a Partnership Agreement then your business will be automatically governed by the Partnership Act of 1890, which may not necessarily say what you want! A Partnership Agreement is essential to lay out in detail the working of the business and the relationship between the partners.
If you are a shareholder in a limited company then a Shareholders Agreement is the vital document – it acts as a supplement to the articles of the company in providing far greater and bespoke detail on the workings of the relationship between the business owners, including restrictions on business decisions, voting rights, and a very specific path for the sale and purchase of shares in the future.
For further information please contact Oliver Kew on 01189 595612 or at o.kew@hewetts.co.uk
Published on 13/01/2020
