As specialists in startup law, Buckworth Solicitors have worked alongside many a-budding businessmen and have helped them translate initial concepts into something tradable within the public domain. However legal services serve as just one piece in the puzzle; connecting the others presents you with the final dream team. Buckworth Solicitors talks us through some of the common challenges facing startups and why you need accountants and insurance brokers on your side.
Accountant: When it comes to handling money, these guys know all about it. Most startups operate to make profit and thus it is essential to keep track of the cash flow coming in and out of the company. For new businesses, accountants should be advising on the following:
Tax Efficient Structures: The two most common structures for new businesses are limited companies and LLP’s (Limited Liability Partnerships). Accountants will be able to advise on the most effective tax structure on the basis of the founders’ personal financial positions and the business’ needs, intentions and predicted revenue.
VAT Registration: If your company exceeds revenue of £79,000 within any 12-month period, you are required by law to register for VAT. Accountants will correspond with HMRC to ensure all the appropriate documentation has been submitted and adhered to.
Insurance Broker: In order for a company to legally trade in the public domain (and to protect the founders and business from certain risks), the company must secure insurance. The following are the three most important insurance policies generally required by StartUps:
Public Liability Insurance: This protects your company if a member of the public suffers injury, damage or loss due to your negligence and then files a claim for compensation. This insurance should cover the cost of the compensation and all associated legal fees.
Employer’s Liability Insurance: This serves the same purpose as Public Liability Insurance but is for your employees rather than members of the public.
Professional Indemnity Insurance: In the unfortunate circumstance where your product or service fails to deliver on what it promises (production malfunction, employee mistake etc), Professional Indemnity Insurance covers the legal cost and compensation payout should a customer make a claim for your mistake.
For a full comprehensive list of all the legal services Buckworth Solicitors provide, please visit www.buckworthsolicitors.co.uk or alternatively call 02079521720.
Buckworth Solicitors will be hosting a series of events throughout this autumn - have a look at the calendar here.