Corporate & Commercial
Carter Lemon Camerons
SETTING UP SMALL TO MEDIUM
ENTERPRISES
Part 1- ‘Where do you start?’
Starting a new business can be exciting. But where do you start? Who do you speak to? What will the
business do? Where can it operate? Will I need premises? Do I need people to make it happen, or will I be
flying solo for some time? Can I fund the business myself, or do I need financial support? How long will it take
to get the business into profit?
There are a number of matters to consider before getting started. Laying down
the foundations is key to any successful business.
Set out below are the main points for consideration when setting up a business.
Have a good business plan
Having a comprehensive business plan is vital to the success of your business. It is important to define what
you want your business to achieve from the outset. The plan would also be a key driver for obtaining finance.
Choosing the right trading vehicle
Deciding which form of ownership is best for you is key to starting a new business. How risk averse do you
want to be? Do you want to take on personal liability or limit your liability? Do you want to operate as a sole
trader, set up a limited company or operate a partnership? There are plenty of issues to think about when
choosing the right vehicle. You should seek legal and tax advice to ensure you choose the most appropriate
form of set up. Our Corporate team together with our wealth and tax advisor can assist you to ensure you
choose the right vehicle to meet your objectives.
Obtain Finance
A good business will require a stable financial base. Be realistic about the level of investment the business will
need both at the start and in the long term. You may decide to focus on debt finance or equity finance or a
mixture of both. In order for your business to thrive it needs strong, well-structured financial roots. From raising
cash to organising your bank accounts, you need to ensure that you have a sound financial basis from which
to build your business. Being a law firm based in EC1 we have developed strong relationships with a number
of neighbouring banks in the city who have dedicated teams to assist SME’s. Please contact our Banking team
for more information.
Premises
There are many legal and practical issues to consider if you need premises from which you will run your
business. Be careful when signing lease agreements. Check whether you will be liable to repair and improve
the property under the terms of your lease. Our Real Estate team have a wealth of experience advising SME’s
on property related matters. Contact the team at an early stage to assist with negotiating the heads of terms.
(Continued on page 2)
Carter Lemon Camerons LLP is a limited liability partnership registered in England and Wales
with number OC333252 Registered office 10 Aldersgate Street London EC1A 4HJ Tel: 020 7406 1000
Accredited by Lexcel. Authorised and regulated by the Solicitors Regulation Authority.
Corporate & Commercial
Carter Lemon Camerons
(Continued from page 1)
Employees
If your business is striving and you are struggling to keep up, the next step might be to hire some help. As an
employer you will have a wide range of responsibilities ranging from legal compliance to finding the right staff,
paying staff on time to keeping them motivated.
It is a good idea to have a standard contract of employment in place from day
one for all employees. It is also important to ensure you have the right
employment policies in place. It is vital to make sure that all new employees
are entitled to work in this country, or you could face heavy penalties.
You should seek legal advice at an early stage before you find yourself
exposed to employment claims. Our Employment team provides practical, dayto-day support covering the full range of employment law issues from
recruitment and employee incentive schemes to dismissal and risk
management.
Intellectual Property
Protecting your brand is critical. If your business has any intellectual property rights such as trademarks,
copyright or patents, it is important to consider how to protect them. This may be relevant both within the UK
and worldwide. Our Commercial team can advise on your intellectual property rights to ensure your brand is
protected.
Contracts
Read all contracts carefully and make sure you understand the terms and implications before signing.
Contact our Commercial team to ensure that you are clear about your rights and obligations. Our team can also
assist you in drafting your terms and conditions and standard contracts to get you started.
Tax Considerations
Ensure you obtain appropriate tax advice. This is particularly important when choosing your business vehicle.
Getting inadequate tax advice can be costly to you and the business. Our specialist Tax team can provide you
with expert analysis of your circumstances and assess your requirements in order to deliver practical tax-efficient
solutions.
Carter Lemon Camerons LLP recognises the flexibility required to deliver the commercially relevant advice
required for SME growth and inward investment. SMEs require legal advisers with whom they can form a
relationship of trust and confidence. The firm is able to offer tailored advice that can adapt and support the needs
of SMEs on an ad hoc basis as they continue to expand. The key in this respect is setting up a strong foundation
that can carry the business from the start up through to achieving its long term goals. We have recently been
awarded “UK Most Trusted Law Firm of the Year to SMEs 2013″ by Acquisition International Legal Awards.
Carter Lemon Camerons LLP is a limited liability partnership registered in England and Wales
with number OC333252 Registered office 10 Aldersgate Street London EC1A 4HJ Tel: 020 7406 1000
Accredited by Lexcel. Authorised and regulated by the Solicitors Regulation Authority.
Corporate & Commercial
Carter Lemon Camerons
(Continued from page 2)
We recognise that project management is key to SMEs: you may require legal experts from across our firm,
particularly specialists in commercial, real estate, employment and tax. We ensure you have the experts you need
and when you need them throughout the process to provide focused and expert advice. We work closely with
other professional advisers to ensure your objectives are met.
Watch out next month for our part 2 section outlining different trading vehicles and in which we assess the
different tax implications of each.
Bharti Gorasia (Solicitor) and Naimi Shah (Trainee Solicitor)
Corporate and Commercial Team
For further information please contact:
Rufus Ballaster (Partner)
Real Estate
[email protected]
Andrew Firman (Partner)
Employment
[email protected]
Chris Picardo (Partner)
Real Estate
[email protected]
Stuart Brennan (Partner)
Company Commercial
[email protected]
Justin Cumberlege (Partner)
Company Commercial
[email protected]
Bharti Gorasia (Solicitor)
Company Commercial
[email protected]
Sabrina Umrani (Solicitor)
Real Estate
[email protected]
James Norman (Solicitor)
Real Estate
[email protected]
Michael Woodward (Consultant)
Wealth Advisory and Tax
[email protected]
Carter Lemon Camerons LLP is a limited liability partnership registered in England and Wales
with number OC333252 Registered office 10 Aldersgate Street London EC1A 4HJ Tel: 020 7406 1000
Accredited by Lexcel. Authorised and regulated by the Solicitors Regulation Authority.