Two common question are: How do I set up my business? And, what legal structure should I choose? Setting up a business is straight forward, however, choosing the right legal structure for your business is important to understand.
Here’s some great curated articles from the web that should provide you with the answers you’re looking for.
Sole trader vs Limited Company:
Direct Line provides a great article in association with Enterprise Nation. It covers the differences in each legal structure from sole trader to limited company. It’s a great starting point. Don’t forgot to check out Cobweb service on the Durham Start Ups portal, here.
How to set up a limited company:
SeedLegals provides a great article on how to set up a limited company and guides you through the process. You don’t need to complete everything at once. For instance, you may leave shareholders agreements, payroll and registering trademarks for a later date as you may need professional advice. It’s a great overview of key areas you need to consider. Find out more on the SeedLegal website, here.
Here’s another great article from Start Up Loans that takes you through setting up a limited company: https://www.startuploans.co.uk/business-advice/how-to-set-up-a-limited-company/.
Directors Service Agreements:
The Institute of Directors provides an overview of a director’s service agreement, an agreement that outlines roles and responsibilities of each Director. Clarifying and agreeing and roles and responsibilities from the outset is important. View the agreement here.
Founders pledge and agreements:
If you have a team but not yet raised investment, you may want to consider a founder’s pledge or agreement before you establish shareholders agreements. A founder’s pledge can be used at the concept stage of the business, it sets rules between founders from the outset. A founder’s agreement can be drawn between founders before raising investment. These documents help manage conflict and disagreements at an early stage. SeedLegals provides free founders agreements when you sign up for a limited period, however, you should consider seeking legal advice, though can sign up here.
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