The short answer is no, you are not under any legal obligation to work with a solicitor while you get your business off the ground. In fact, there is no law requiring any UK-based business of any age or size to have a solicitor on hand.
The longer answer is, however, a little more complicated. After all, while there is no requirement for you to have a solicitor, working with a corporate solicitor is the best possible way to circumvent legal pitfalls – in the early days, and decades into your business’ life – and not building that long-standing relationship can cause significant issues down the line.
Developing that relationship sooner rather than later can save you a lot of time, money and misery. So, while there’s no legal requirement to work with one, can you afford not to?
You can click here to find out more about enlisting the help of a corporate solicitor, but, for now, here are just a few instances where a corporate solicitor proves indispensable to businesses.
Shareholder agreements
Managing the paperwork for a limited company with several shareholders is a complex process, and incredibly daunting. Not only have you got to make sure that all the paperwork is in order, but that the interests of all parties are protected – and that the entire agreement is tailored to your business model and your expectations for the business’ operations and future. You and your fellow shareholders’ rights and obligations will be clearly stated, so that potential disputes are mitigated at the source.
A strong shareholder agreement won’t just protect the shareholders, but also help to avoid loss of revenue in the future. It is tailored to your business for the long-term – not just how it is right now.
Foreseeing issues
Unanswered questions can easily turn into pitfalls and unforeseen issues, disruptions, and disputes. For anyone running a new business, the demands of day-to-day operations (and a lack of experience in commercial law) can easily mean that important questions are left unanswered.
Corporate solicitors are not just there to answer your questions, but to look for these ‘blanks’ and ensure that they are addressed sooner rather than later.
Ensure the right contracts are in place
Contracts are there to protect the interests of all parties – including yours. While they can feel like a formality or an inconvenience, ensuring that they are properly drawn-up and designed to really protect you from potential issues down the line is absolutely key. Whether you’re drawing up contracts for your clients, customers or suppliers, only an experienced corporate solicitor can make certain that they are as beneficial as possible. Let them help you to make the most of contracts – and not just treat them as a formality.
Finding a commercial premises
Leasing a commercial property is a big step. Much like taking on a lease for a domestic property, you need to take a cautious, measured approach to signing up for the landlord’s terms.
But, if you don’t have any experience in scrutinising legal documents, you cannot be certain that you’re not overlooking a potentially major issue that will cost you in the long run. A solicitor can spot these issues, and help you to find a more beneficial compromise with the landlord.
Insurance
Some insurance policies will be far more beneficial to your business than others. There is no ‘one size fits all’ option for businesses, since your sector and the nature of the business itself will dictate what is important, what is optional, and what is totally unnecessary.
A solicitor will take the guesswork out of looking at these products, and help you to protect your business without going overboard.
Financing growth and development
A corporate solicitor isn’t just there to help with specific queries, but to offer guidance on the growth and development of your business. From securing funding to issuing shares, they can use their expertise to help your business reach the next level (and beyond).
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