Five Questions to Ask a Lawyer When Starting a Business in the UK

A business idea is the start of an exciting journey. However, when starting a new business in the UK, you will encounter a range of legal issues. These legal considerations can be complex and may require specialist knowledge to navigate. Therefore, engaging a lawyer’s expertise will help you navigate setting up a business in the ever-changing business landscape. A lawyer can save you time, money, and stress while ensuring your business complies with the law. This article will explain some key questions you should ask a lawyer when starting a UK-based business. 

Importance of Legal Advice When Buying a Business

Each new business journey is a one-of-a-kind journey. The path taken by new business owners can vary based on a multitude of factors, including:

• the skills you already have;
• the nature of the business venture; and 
• the specific industry you operate within. 

But, with any business, a similar set of rules apply. An experienced lawyer will help you understand these rules and guide you through the complex process of starting a business. They can guide you through many legal processes, from negotiating property leases to creating employment contracts. 

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Questions to Ask a Lawyer When Starting a Business in the UK

When engaging the help of a lawyer, there are some key questions you can ask them. The following questions apply to various types of new businesses. 

1. How Should I Structure My Business?

A lawyer can advise you on the optimal structure for your business. There are various business structures in the UK. These include: 

• sole traders;
• business partnerships;
• limited liability partnerships; or
• limited companies (these can be either public or private limited companies).

Each business structure has different qualities. The format you choose can determine: 

• the amount of tax you will pay;
• your rights as a business owner; and 
• your level of asset protection. 

It is vital to make an informed decision about which type is suitable for your business. 

You can register the business with Companies House once you have decided upon a structure and prepared the required documents.

2. What Contracts and Agreements Do I Need?

Your business will likely deal with many different contracts and agreements. Relevant documents may include: 

• supplier agreements;
• employment contracts; or 
• the agreements you share with customers. 

If you opt for a partnership structure, you will also need to prepare a partnership agreement. Furthermore, you may need to prepare more contracts based on the specific needs of your business.

Seek advice about the contracts you need to set up and operate your business. A lawyer can create and review these documents or help you to negotiate the terms. 

3. Which Legal Obligations and Regulations Apply To My Business?

As a business operating in the UK, you must: 

• comply with data protection laws;
• apply for particular licenses; and 
• meet industry-specific regulations. 

Corporate lawyers are well-versed in the legal landscape of business. They can ensure you meet the necessary regulatory requirements from the outset, helping you mitigate the risk of future legal disputes. 

4. What Are the Potential Legal Risks, and How Can I Mitigate Them? 

Your exposure to disputes or legal implications determines your legal risk. Common legal issues in the business world include: 

• contractual disagreements;
• regulatory non-compliance; and 
• partnership disputes. 

Lawyers will be able to identify and mitigate these potential risks. Their advice can protect the long-term viability of your business. Your legal advisor will also be able to assess your business idea comprehensively. They can review your business plan to spot any potential pitfalls you may have overlooked. They will also consider your industry and operations within their evaluation. 

Mitigating future risk can result from your actions taken as a result of your lawyer’s advice. Seeking their advice about business insurance can also help you to reduce the risk of financial harm.

5. How Can I Safeguard My Intellectual Property?

Safeguarding branding, logos, and other creative works is crucial for businesses. Intellectual property lawyers can advise whether you need to protect your intellectual property and help you register necessary trademarks and patents. They can also tailor the protection strategy to your business. 

Registering your intellectual property rights can protect your newly established brand and customer base from harm. The following table breaks down relevant areas of intellectual property protection you will need to consider when starting your business venture in the UK. 

Key Takeaways

When setting up a new business in the UK, the content of your discussions with a lawyer will be unique to you and your industry. However, whether you are planning to start a small business or have grand business plans for a multi-national chain, prospective business owners can ask similar questions at the outset of their journey. These may include:

• the optimal business structure (for example, a limited company format);
• contracts and agreements you will need to prepare; 
• legal obligations and regulations that apply to your business operations;
• identifying the potential legal risks ahead of you and how you can mitigate them; and
• protecting your intellectual property. 

If you would like legal advice as you set up your business, our experienced startup lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.