Starting a business?
Written by Ian Gray, Head of Rethink Law
Thinking of starting a business? – it is important to start your legal planning early.
The planning stages of starting a business will establish building blocks for its success, give partners or shareholders some rules in which to operate the business and ideally also give you and your families personal assets protection. Before investing your money and time into growing a business it is important to make sure you consider the correct business structure.
Attempting to change a business structure at a later time can be costly and have other dangers, the least of which is a business owner never getting around to it leaving the owner exposed.
We can assist you with advice on the correct structure and how this benefits the stakeholders in the business.
A shareholders agreement (for a company) or a unitholders agreement (for a unit trust) will help set up the ground rules for partners in a business, not only in its day to day operation but in more dramatic circumstances where a partner wishes to get out of the business. Such agreements go a long way to reducing the potential for dispute.
Early planning should also consider what registrations or licenses are needed to operate a business, whether premises are leased or purchased, what requirements apply for employees and contractors of the business, creation of terms and conditions for sales or services to customers and clients, and protection of intellectual property.
Our experience is that businesses that commence with early planning are better able to focus on building and are less likely to have business owners distracted by resolving problems that could have been avoided.
If you have any questions in relation to the information in this article or would like to come in and have a chat to us to get some support, we’d only be too happy. Simply submit an enquiry below or phone our office 02 4962 4440.