5 Tips For Legally Forming And Running A Business
25 March 2015
Forming and running a business is an exciting idea, but the legal side of business can be a daunting prospect. That’s why we’ve put together five tips that will help you on your way to legally forming and running a business. By avoiding making mistakes, you’ll save you and your business money and time and get the legal side of things out of the way, so you can focus on running your business.
Check your company name and register it
This is one of the first things you should do when forming a company. It’s a good idea to register your company as a limited company as it offers more protection than being a sole trader. It is a great idea to talk through these options with a business expert or accountant, as they will be able to explain the difference. Give us a call if you’d like to talk it through on 020 8232 5479.
Assuming you are going to register as a limited company, there are some important things to remember:
- The company name must end with the word Limited or Ltd.
- The company name must not be the same as, or similar to another already registered company name. You can check this here: https://blog.eformations.co.uk/
- Your company name cannot contain any restricted or sensitive words.
If your idea is an original one, consider patenting and copyright
If you have a great original idea for a business, it’s reasonable to not want anyone else to steal your concept. If you are concerned that this may happen to you, it’s a great idea to look into patenting, copyright and even trade marking, which may help to protect your idea and give you the legal grounds needed to go after anyone who does attempt to steal your idea.
Before rushing into spending a lot of money on patenting an idea, it’s a good idea to find out what the patent is actually worth and how much it will protect you. A great way of finding this out is to ask the question ‘what would someone need to change in order to not break the patent?’ and you’ll have your answer. You may be surprised how easy it is to get around!
Organise your finances
It’s a good idea to organise your business’ finances as soon as you start your business. This means less time searching for receipts and being bogged down in a mountain of paperwork later. Finding an accountant you like early on in business is a great idea.
You can also get organised using your mobile phone! We recently wrote an article on accounting apps that can help your business keep track of money. Read it here: https://blog.eformations.co.uk/2014/11/
Read up on employment law
If you’re going to be taking on employees in your new business, there is a lot you need to know in order to comply with the law. A great way of learning all you need to know about employment law is to sign up for a reputable short course, run by an expert. Alternatively, at the start, hire freelancers to avoid the paperwork and legislation associated with employing staff.
Seek professional advice
If you’re considering forming a company and a business, we can help you to get it right first time. From helping you to check whether or not your chosen name is available, to online company formation and much more, visit https://blog.eformations.co.uk/ to start your business today. Alternatively, call us on 020 8232 5479 for a friendly chat and discover how we can help your business today.
