Chapter 10 - Law and Taxes: Play it Smart, Stay Sharp - Get Professional Help

When embarking upon a new small business, I would always encourage you to seek advice from the professionals relating to your business set-up and payment of taxes. There are a lot of sharks out there ready to take your money, but not the accountability for your legal issues or tax calculations, unqualified accountants and so-called legal experts, so don't get fooled by them. Make sure you appoint a registered professional for your legal advice and your tax advice.

As a qualified Accounting Technician (AAT) of many years, I know there is a difference, and it could cost you big. Whilst I am qualified to keep records, draft profit and loss accounts, balance sheets, and complete VAT returns, I am not a qualified tax accountant and I don't pretend to be. I could not and would not advise you on tax issues. I also worked for several years as a Practice Manager in a firm of lawyers, but I would never give any legal advice. If only others had the same scruples? Anyway, I'm off my soapbox. Let us delve into the reasons this is important.

Why consult Professional Help through a lawyer?

Legal guidance is essential for understanding how your business should be formed, a sole trader, partnership or limited company for instance. They can help with the registration process, including business name registration, and ensure compliance with relevant laws and regulations. Falling foul of laws and regulations could seriously harm your business.

Legal guidance will also help with drafting contracts, which aids in safeguarding your interests such as drafting agreements between partners, or lenders, ensuring all parties' interests are protected. Lawyers can also help draft and review contracts with suppliers, customers, employees, and other parties, ensuring they are legally sound and protecting your business interests. They can help enforce contracts in case of disputes or breaches, protecting the business from financial loss and reputational damage.

A lawyer can guide businesses through the process of securing intellectual property rights, such as trademarks and patents, to protect their brand and inventions. They can advise on copyright issues related to creative works and content, helping businesses protect their intellectual property.

Lawyers can identify potential legal risks associated with the business, such as liabilities under employment laws, environmental regulations, or consumer protection laws and they can advise on strategies to mitigate these risks, such as implementing insurance policies, complying with regulations, or creating robust risk management plans.

Lawyers can provide guidance on employment law issues, including recruitment practices, employee contracts, and termination procedures. They can help businesses comply with anti-discrimination laws and policies, protecting both the business and employees.

Lawyers can assist in resolving disputes, whether with customers, suppliers, or other parties, through negotiation, mediation, or litigation. They can also represent the business in legal proceedings, ensuring your interests are protected and that you are not unfairly disadvantaged.

Why consult an Accountant? 

Sometimes, you will see that there is a bit of crossover between an accountant and a lawyer, such as choosing the right business structure.

From the start, the accountant can show you how to keep your records and advise you on the best accounting software for you to use. They will also advise on saving for your pension and obtaining insurance cover.

The accountant can also undertake some duties (and take on accountability) for you such as preparing annual accounts, i.e Profit and Loss, Balance Sheet. They will complete periodic payroll, VAT returns, and Tax returns on your behalf.

Accountants can help you to prepare tax calculations showing where you can find tax savings. They will also highlight other practical benefits and drawbacks. 

These are all very practical subjects that you will inevitably need some assistance with.

Ultimately, its your choice whether you seek the advice and assistance of these professionals, but I would always recommend a consultation at least, as the saying goes...

'you don't know what you don't know'

Keep It Legal, Stay Sharp!

Other Chapters in this series so far:-

Chapter 1   - A Business Idea - Lets Make it Happen

Chapter 2  - Target Your Market

Chapter 3   - Land Your Brand

Chapter 4   - The Price is Right

Chapter 5   - Lets Get Down to Business

Chapter 6   - Its All in the Name

Chapter 7   - Location Location Location

Chapter 8   - Financing your New Business

Chapter 9 - Recruitment

Chapter 10 - Law and Taxes: Play it Smart, Stay Smart

Chapter 11 - Kick off Your Business with a Bang

Chapter 12 - Financial Review for your Small Business

Look out for the next chapter.

The Lead Coach is always available should you need any further help with your new business. Just fill in the contact form on my website www.theleadcoach.biz