Solicitors in Leeds

LEEDS SOLICITOR SMALL BUSINESS TIPS & FAQS

What tips can you offer for avoiding common legal and business pitfalls ?

• Ensure you are contracting with the right entity – always double check whether your potential customer is a company, partnership, sole trader or LLP. Depending upon what the position is, take appropriate steps such as credit checks, deposits or such like. Always double check information given, such as, if contracting with a company, check they are registered at Companies House, and confirm their registered number – a company can change its name several times, whereas the number always remains the same.
• Make sure your business processes are legally sound – you may have excellent Terms and Conditions, but did you know that if the customer’s attention is not drawn to these before the contract is formed, you will not be able to rely on them. The offer and acceptance process can be complex, especially when dealing with two or more sets of Terms and Conditions (for example when dealing with another business) and you need to ensure that the way you do business ensures that your terms apply. There are also terms that are imposed into contracts for goods or services by law, and each business will have different terms implied.
• Don’t put your personal assets at risk -If you are starting a business with one or more people, you can choose partnership, limited liability partnership or limited company status. Remember that in a partnership, all partners are individually and jointly liable for debts. Try and avoid giving personal guarantees and always check the terms of any guarantee carefully and try and negotiate to limit liability, and check how you can cancel the guarantee in the future.
• Put it in writing – ensure that all business agreements are confirmed in writing. If you reach an agreement verbally, get  confirmation in writing as anything that is agreed verbally is often difficult, if not impossible to put into effect, if problems arise.
• Don’t take risks with health and safety -by law, all businesses need to assess potential risks in the workplace – health and safety fines can be hefty and can cripple your business. Only firms with fewer than five people are not required to come up with a written statement. Your statement should deal with fire risks and procedures for reporting and dealing with accidents.
• Get terms and conditions right – make sure all your customers are aware of your terms and conditions, otherwise you will risk being paid when they feel like it, and sometimes not at all, if they go bust. You will also need to ensure that your customers agree to these terms and that they are aware of them each time an order is placed.
• Keep up to date with changes in the law -employment law is one area that is constantly changing so it’s important that you keep up-to-date. Every employer must provide a statement of employment, clearly laying down certain details, and it can be in your interests to include policies that are not needed by law, but that would be beneficial.
• Protect any intellectual property

What contact information must sole traders include on communications ?

• business name
• if the business name does not include your own name you must also show your own name (eg J Bloggs t/a Plumbers r us)
• address for correspondence
• contact details (phone number, fax number if you have one, email address)
• VAT registration number, if you’re registered for VAT