When you set up a new business, one of the first things you need to put into place is insurance. Whether this is employers’ liability insurance, buildings insurance or contents insurance, it makes sense to know you’re protected. But what would happen to your business if you were no longer there or able to take care of it? This is where Lasting Powers of Attorney (LPA) can help.
Appointing an attorney is like taking out another form of insurance for your business – it’s the peace of mind in knowing that someone you trust will be there to take care of things if you aren’t able to do so. Problems with the business could affect a range of people – from your customers who may be reliant on your service or products, to your employees who depend on their wages, to your family who may feel the strain should your business suffer. While it may seem obvious who would take over your business affairs if you were required to stop working, an LPA is required for this to go into affect. Without an LPA, your trusted partner or colleague would not have an automatic right to handle your affairs and there is no guarantee of what would happen to your business, so it needs to be formally put in writing.
But who should you appoint? A business Lasting Powers of Attorney is different to a personal Lasting Powers of Attorney and it’s important to know what you are granting someone the power to do. In most circumstances, an attorney is able to buy and sell property, organise insurance, access bank statements and accounts, invest assets, and deal with taxes on your behalf – so it is crucial you choose someone you trust. Unlike a personal LPA, a business attorney may not necessarily be a friend or relative, but rather someone who knows the business well and who you trust with your professional affairs. If you have a business partner, they would be the obvious choice. Should you not have just one person who you trust with everything, you may be able to elect more than one attorney – for example, you may wish to elect a colleague to take care of accounts and business decisions, but a family member to take care of property or assets.
Following recent changes in the law, appointing an attorney is now significantly more complicated. We have created an information sheet, outlining all the necessary information required to make and implement your decision, however, we highly recommend contacting a trusted solicitor. Our team of professionals have years of experience and can assist you from the beginning to the end of the process, ensuring that your business is in safe hands.