Fundamental to every business is getting the legal structure right.
It’s amazing how many times businesses are set up incorrectly or with key elements missing. It is important to get the legal entity right – limited company, sole trader, partnership or limited liability partnership (LLP) – but it’s equally important how the business runs, how decisions are made and how problems and disputes are solved.
Getting everything right now can save a lot of time and money dealing with future disputes. Whilst everything may be fine now, what would happen if:
- Your tax bills are bigger than you expected, and could have been avoided or significantly reduced if you had the right legal structure
- A bad debt closes your company and you’re liable for the debts which takes all your personal cash and assets
- Your business partner dies and their shares go to their family who want you to buy them back
- Your business partner isn’t pulling their weight or you can’t agree on the direction you want to take the business. Do you have a mechanism to resolve the situation?
- A shareholder challenges what rights their shares have and there is nothing in writing to support the conversation you had a couple of years ago
- Your business partner leaves the company but refuses to give you the shares back, and to add insult to injury has taken some of the staff and a lot of the business customers!
Here at Friend & Grant we have the knowledge, expertise and experience to put the best legal structure in place. We’ll make sure that shareholders’ or partnership agreements and company’s articles are correct so that future problems can be resolved easily.
We’ll discuss with you how to get the most from your business and how best to protect it. We can provide bespoke planning including:
- Creating a group structure or restructuring a group
- Restructuring your existing company through the issue of different classes of shares, amendments to company articles and shareholder agreements
- Business valuations
- Share option schemes for key employees
- Exit strategies including buy back of own shares, management buy-outs, passing the business on to the next generation or selling your business
- Management buy-ins, mergers and demergers.