Now that the new financial year has commenced in earnest, its time to consider your current business structure and to start putting in place any changes.
The focus needs to be not only on how you deal with the current structure but also what you will do into the future.
Some issues for you to consider:-
- Is the structure appropriate? E.g. if you are a sole trader and run the business in your individual name, should you set up a company?
- If you are one of two or more shareholders in a company, is there a shareholders agreement in place which governs that relationship and also what will happen if one or more shareholders wish to sell their shares in the future (e.g. because they want to retire or just move on)
- Are there two or more parties who own and run your business? If so, do you have a partnership agreement in place?
- What is to happen to your business or your share in the business if you wish to retire? Do you want to put something in place with your partners or employees now giving them the opportunity to buy you out?
- What will happen if there’s a dispute between the parties?
We consider it essential that clients have agreements in place which set out not only what each parties obligations are but also set out what will happen if one party wishes to leave or there is a dispute. In the event this occurs, the agreements make the process much easier than it is without them.
Please contact us if you wish to discuss further.