Meeting

What Are The Laws Around Starting A Business?

Are you planning to open your own business soon? That’s great, but there are a lot of legal compliance issues you should know. If you’re not sure about everything you need to start a business, especially concerning the legal side of things, let’s get you ready!

 

First some caveats though. We can’t guess what industry you’re in and there could be unique legal considerations such as licenses and permits. You and your employees need to understand the specifics that concern your business, and you’ll want to keep watching for new laws. Industry-specific blogs and newsletters often contain this important info or will point you to places that do. Subscribe to a few and keep reading the ones which give you the most support and community.

 

Also, many aspects of starting a business can be very complex based on ever-changing laws and where you live. There have been many legal revisions over time, so unless your life has revolved around following them, your best choice will be to ask someone with a lot of experience in that area: business consultants, certified accountants, law professionals and solicitors. You might end up with fines otherwise and just think of how much less stressful running a business will be with someone helping. Paying a little upfront can save you quite a lot down the road!

 

Business Plans & Funding

A plan for a business is how the owner will reach the goals of that business. This includes the products and services you’ll sell, how you’ll sell them, who you’ll employ or get materials and supplies from, the estimated business scale and customers, plus any other sources of funding. Knowing these things will help you decide many of the following legal considerations when you have a choice to make.

 

Remember that you can always change your plan if your business changes. You might start selling different things or in different ways, and in doing so you should also consider updating the business plan to see how that may change your thinking on all the related legal considerations.

 

Are you able to start the business completely with your own money? If so, you’ll need to register this investment in the accounts of your business for tax purposes. Did some of the money come from others? Make sure there’s a record of this and whether the money was a gift or a loan you will pay back. Friends and family should be informed that investing comes with the risk of loss, just as if they were investing in stocks.

 

Banks and professional investors often ask you to sign contracts before they give you startup money. Read all contracts thoroughly in case they make claims on ownership of the business or your ability to make leadership decisions going forward. Some of the contracts doing so are normal, especially with investing, and only you can decide if you will accept the terms.

 

When you talk to clients, customers, investors and other partners about your business, they can take that information for their own ends. One way to handle this is by never telling anyone the secrets of your business, but the better decision is to have them sign Non-Disclosure Agreements, also known as NDAs. These confidentiality contracts make them liable if they tell people things you don’t want to be told, such as recipes or development secrets.

 

NDAs do have some exceptions, like conditions which release the signers from silence. In most cases, they can also prevent someone from using your information for their own benefit, such as creating their own product with the same secret recipe. NDAs are important for businesses because mere ideas do not have legal protection, unlike patents.

 

Some things can be protected, such as your business logo or copyrights on fixed, recorded expressions of ideas. When you work with people who could potentially develop new business-changing ideas for you, always create contracts so that both sides know who owns the intellectual property rights.

 

Legal Structures Of Businesses

New businesses must be formed with a specific legal structure, and each type has different rules and regulations. These become especially important when considering how you’ll pay UK taxes and National Insurance.

 

In a Limited Company structure, the owner is legally considered to be separate from the business. If your business gets into legal trouble in the future, only your business assets will be considered as possible ways to pay up, and not your past wages or the things you purchased with them. You generally assign yourself a wage in this structure and that pay is subject to tax and National Insurance. The rest can go back to the business as you see fit, although remember that your business profits are subject to corporation tax.

 

This type of structure has a lot of regulations and legal formalities, such as filing certain records with Companies House. You might need to be an expert already or hire someone to make sure everything is done properly. If you know your way around business regulations and don’t want your property to be seized in any potential future legal issues, a Limited Company structure might be right for you.

 

Next up is the Partnership structure, also known as a Limited Liability Partnership or LLP. Here business revenue is shared as personal income, the LLP cannot be created with only one member (thus the partnership name) and your business must be a supplier of professional services such as accounting or consulting. All owners are charged with some limited personal liability when the business owes debts, but otherwise, the regulations around Partnerships are looser than a Limited Company. If you and someone else treat the income and debts of the business as your shared responsibility, and you’re supplying professional services, a Partnership structure might be right for you.

 

Finally is the Sole Trader structure, where the owner is legally considered to be the same as the business. This means if your business commits a crime, even accidentally, then you committed a crime. But you can also take money from the business however you like, rather than paying yourself a wage. If the bank account of your business is your bank account and you feel sure your business won’t get into any legal trouble, a Sole Trader structure might be right for you.

 

Since business revenue directly becomes personal income in both Partnership and Sole Trader structures, you’ll pay taxes and National Insurance on everything your business makes. There may be some considerations for business expenses so ask your local law offices for more information.

 

Business Contracts & Employment

Solicitors and law consultants will help you write solid business contracts with good terms for both sides. This includes co-founder contracts, employment contracts, the previously mentioned investor contracts and more. In business, contracts are a good thing because they create rules in case of disputes and problems.

 

When starting a business with a co-founder, a shareholder contract is a good idea so that everyone knows who will make final decisions for the business and run things day-to-day. Will the co-founder also be working for the business? They might need an official employment contract to make clear if they must meet certain business goals.

 

The general advice with employees is to always give everyone an honest understanding of their job, then to work them in fair fashion just as you would want to be treated if the situation were reversed. Employment laws change based on where you live and what kind of business you have, so make sure you know the local specifics. Being taken to court for unlawful treatment or a misunderstanding of the job scope takes time and money away from you even if you win, so avoid this by becoming the employer you would want to have!

 

A business should be safe for the employees, not to mention for the customers. This may require testing all of your tools and equipment to gain safety certifications. Without testing, someone who gets injured at your business can sue you for having this dangerous item. With the certification, their injury can be ruled due to misuse and you wouldn’t be liable.

 

Clients and suppliers may also need contracts to set expectations. How much material will a supplier bring you? Can you follow the terms and conditions of your supplier? Are your clients expecting work from you that you didn’t know about and can’t meet? The goal when answering these questions and creating contracts as a new business should be clarity for all.

 

Online & Virtual

There are many laws concerning online spaces and personal data, and this field is constantly changing. For example, businesses that collect customer data must meet data protection legislation. The subjects of your collected data have rights such as knowing whether you will be using the data for purposes they didn’t agree to. Your business should have a clear data privacy policy that tells people all of this, and of course, you need to know that information yourself.

 

Clyde Offices is a leading virtual office provider for new businesses in Glasgow. We have a range of support services including business mailing addresses, forwarding services, telephone answering and virtual assistants. Contact us soon and sign up for your new business!



Stuart GraceStuart Grace
11:06 30 May 24
Very efficient and friendly service. Excellent value for money. Strongly recommend this service. Have used this service as my ltd company registered address and hence get correspondence forwarded to my home address.
Business 83Business 83
21:16 16 May 24
Very easy sign up, clear and fast communication with competitive pricing. Just joined and hoping the service is as good as the sign up process.
Muhammad ADMuhammad AD
09:29 16 May 24
Great service, great rates and quick admin staff replying to emails and sending through stuff very quickly. 10/10 would recommend if looking for a virtual address in Glasgow for business or private company purposes.
Morag WebsterMorag Webster
07:39 03 May 24
I recently signed up to Clyde Offices and so far I couldn't be happier with the experience. From the moment I initially enquired about their services to signing up, their communication has been prompt and efficient. The sign-up process was incredibly easy and straightforward.
Calum PatersonCalum Paterson
06:16 03 May 24
Recently joined Clyde Offices and the whole process has been so easy. From signing up to the initial engagement from the team, the whole process couldn't have been better. would highly recommend.
SA PietrzakSA Pietrzak
16:05 24 Apr 24
I would like to recommend Clyde Office for friendly and professional service. The set up process was easy and straightforward.
Tom McDonaldTom McDonald
19:25 18 Apr 24
Great Service and very easy to use.
Teresa RTeresa R
13:43 18 Apr 24
Only recently joined, however, I am really pleased with the ease of joining, the promptness of engagement and the general engagement received. Thank you.
PucPuc
08:00 12 Apr 24
Setting up a new registered address for my business was so stressful with all the other challenges a new business faces. Clyde Offices took all the stress out of it. The service was so simple to use and we're very happy with the ongoing relationship.
Y. R.Y. R.
10:13 11 Apr 24
The registration with Clyde Offices was easy and efficient and the fee was very reasonable. I've been with them for a few weeks now and have been very happy with the service. Responses to a couple of queries I had were prompt and resolved easily. I would happily recommend this service.
esther iesther i
11:45 28 Mar 24
Really happy with the service so far very proactive and happy to help us with whatever we need
MFbyForesytheMFbyForesythe
10:56 28 Mar 24
I am totally enjoying the services. This is one of my best decisions I made beginning of 2024.
Eryk SzyminiakEryk Szyminiak
11:02 26 Mar 24
I recommend it, easy access to the website and unrivaled low cost... '
Kerry HarveyKerry Harvey
12:22 21 Mar 24
Not long started using this s service and so far amazing. Easy set up and very fast.
Ian HoughtonIan Houghton
12:37 11 Mar 24
Excellent service. Centrally located Well priced
a ea e
09:40 04 Mar 24
Speedy on-boarding process, efficient mail notifications and friendly reception
IdrzyIdrzy
19:43 15 Feb 24
Very fast service , address sent via email immediately after purchase. Attentive staff and customer service
Tom GairTom Gair
09:39 09 Feb 24
Found these guys, easy to follow online instructions. Quick to set up. Very fast response times to welcome us on board. Not yet used their services, but I'm sure they will be great!
Jordan SmithJordan Smith
13:49 01 Feb 24
Mark MunroMark Munro
14:50 29 Jan 24
Quick and easy to set up, very competitively priced with good support and friendly follow-ups.
Team NeonTeam Neon
09:40 26 Jan 24
Great service!
Michelle LydenMichelle Lyden
16:59 25 Jan 24
Clyde Offices provided us with a consistent and really good service for almost 4 years. Gerry was always at the end of the phone to help us with our queries. I would recommend Clyde Offices if you are looking to add value to your office needs, i.e. outsources answering service etc.
David HeriotDavid Heriot
11:08 11 Jan 24
Super easy to set up, very competitively priced and friendly follow-ups.
Gillian's WalksGillian's Walks
14:01 30 Dec 23
Quick and easy to set up. Great to have an option like this locally.
SamSam
12:41 07 Dec 23
I was looking for a mailbox provider as I am studying and I live abroad. I found Clyde Offices and they were very helpful in answering my questions. Very reasonably priced and would allow me to receive a few parcels. I highly recommend them and I will be using them for many years. The staff were very attentive and friendly.
Julie MurphyJulie Murphy
15:16 06 Nov 23
This is a great idea if you have your own business but would like an address in the city centre on top of, or instead of your own address or other location.Allows you to advertise as being based in the city centre.Anytime I had to contact the offices the staff were great and very helpful. I didn't need to contact them much at all because the process is so easy and straightforward.
Charles RidleyCharles Ridley
08:55 20 Oct 23
Really easy to get set up and competitively priced service.
William KimmetWilliam Kimmet
23:25 19 Oct 23
Very good and very cheap rental
Jon ChristieJon Christie
11:25 10 Oct 23
Can't fault the service; long may it continue. A good choice for most I would think
Stacy MairStacy Mair
09:56 10 Oct 23
Clyde Offices were very helpful and informative when setting up an account with them, they provide the full service at competitive prices and no additional fees.
j caldwellj caldwell
16:47 21 Aug 23
Setting up my virtual business address with Clyde Offices was so quick and easy to set up in minutes. They also were in email contact to make sure everything was ok and if I needed any other services from them just to make contact with them. I couldn't be happier with the service I received. Thank you
Levati LearningLevati Learning
14:13 21 Aug 23
Very good experience working with the team at Clyde Offices. They have been helping us out for over 5 years now and couldn't survive without them.
Joanna “C.”Joanna “C.”
16:12 14 Sep 22
A vastly superior service from Clyde Offices than any of the corporate virtual offices I have used in the past. A fab team, very efficient and friendly, always very helpful. I would recommend them one hundred percent. Great Central Glasgow location if you ever need to visit.
Audrey JenkinsAudrey Jenkins
04:00 03 Jul 22
I hired a mailing address through Clyde Offices for two months and the service was hugely helpful during that time. I rented some camping equipment for my hiking trip and could only find it for mail delivery; because I flew in from the USA, I needed an address in Glasgow and it so happens their office is very near the train station so this plan worked out perfectly as I set out Monday morning for my trip via train. In addition to easy communications and set up, the service worked with me on my order so that delivery time and pick up were arranged and I had no issues arriving and picking up as planned despite an awkward delay between delivery and pick up. My box was also large, which was certainly an inconvenience for them to hold for a week, but they understood my situation. I recommend Clyde Offices if you are seeking a mailing address in Glasgow.
Kathleen RobertsonKathleen Robertson
09:33 21 Mar 22
I have found Clyde Office to be 100% committed to all work that they carry out for people. Very helpful polite and trustworthy.
Ralph FlemingRalph Fleming
14:44 20 Mar 22
Alan and the team have been a real find for me. They do my reports and deal with all my mail for me. They automatically scan my mail over to me so that I can pick it up on the go, I could not recommend them enough for a small business like me. It's true what they say if you don't have an admin person then you are the admin person!
Austin PowellAustin Powell
17:56 19 Mar 22
Clyde Offices provide me with an incredible service that is invaluable. They help me manage my business. I use for call answering, mailing address and also they help with some of my admin via the virtual assistant service. 5 stars for sure.
Hunter StellaHunter Stella
18:45 16 Mar 22
Sign up was straightforward, and got a virtual mailing address confirmed within minutes. Would recommend.
Glasgow ClinicGlasgow Clinic
11:57 16 Mar 22
Amazing service for a new startup. Understands my business needs and always happy to offer solutions. Professional staff at the end of the phone every time.
hondo madhohondo madho
15:19 14 Mar 22
The staff are professional and timeous in their communication to customers.They give you confidence to work anywhere in the world and they handle your administration in a fantastic way.....keep it up...
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