Legal advice crucial to starting a small business
Sep 19 2007
A small firm may fail before it has been given a chance to succeed - if proper legal checks are not taken when starting up, it has been suggested.
According to legal specialists Thring Townsend Lee & Pembertons, entrepreneurs may even put their personal assets at risk if they are not advised on the right sort of company for their business.
Spokesman for the firm, John Davies says: ' First of all they need to take advice on what kind of entity they intend to be.
'So if it’s a one man band, for example, they may well be better off as a sole trader.
'If they are two or more people looking to make a profit, they could become a partnership or they could become a limited company or a limited liability partnership.'
He continues: 'A number of small businesses or people starting out may not realise the responsibility and the liability that comes with [a business].
'Start ups choose the limited liability company because if it’s a limited company you limit your own personal exposure.
'So, if things go wrong, it's the business that becomes insolvent and not you.'