Business Law is a broad term. It includes a variety of topics that affect a small business in different ways. Having at least some knowledge of these areas can be helpful to the small business owner.
I am Glenn Duker. The aim of this short article is to identify some fundamental matters, being items that directly affect a small business. I began practising law in the mid 1990's and I have acted for many SME's. I think that business owners do well to seek to understand business law and to get solid legal advice.
When choosing a business style, setting up as a sole proprietor may be a good option. This structure is a basic one and the way to do it is to operate in your own name. Utilizing a business name can be helpful here. Although it is relatively easy to set up, it affords no protection of assets and may not be helpful with tax consequences. Sometimes a partnership is a sound idea for owners to spread the risk and share the profits but in reality will be too inflexible for most.
Premises can help or hinder a business. You must consider the type of location, how old the premises are, how much it will cost to fit out the premises and often most critically, the exact location. Sometimes a business will require good visibility, being reliant on foot traffic. The amount of rent should be considered carefully, not merely at the beginning but for the life of the lease. For a tenant, it is often a good idea that you seek a short term lease with options for further terms.
Business contracts are notoriously complex. Terms of trade are a case in point. Too many businesses simply use standard terms or copy another businesses terms to save money at the beginning. This is poor business practice and often proves to be problematic later. As one example, should your business carry out work and your terms of trade are loose with respect to retaining title to those goods (and this part of the law as undergone many changes), one might find oneself unable to get paid if the other party goes broke. In this case, not knowing what to do can be costly. Terms in your contract should be well drafted for your protection.
The comments in this article should not be construed as legal advice, as each situation is unique. Always consult a lawyer for legal advice in relation to your business matter.
I am Glenn Duker. The aim of this short article is to identify some fundamental matters, being items that directly affect a small business. I began practising law in the mid 1990's and I have acted for many SME's. I think that business owners do well to seek to understand business law and to get solid legal advice.
When choosing a business style, setting up as a sole proprietor may be a good option. This structure is a basic one and the way to do it is to operate in your own name. Utilizing a business name can be helpful here. Although it is relatively easy to set up, it affords no protection of assets and may not be helpful with tax consequences. Sometimes a partnership is a sound idea for owners to spread the risk and share the profits but in reality will be too inflexible for most.
Premises can help or hinder a business. You must consider the type of location, how old the premises are, how much it will cost to fit out the premises and often most critically, the exact location. Sometimes a business will require good visibility, being reliant on foot traffic. The amount of rent should be considered carefully, not merely at the beginning but for the life of the lease. For a tenant, it is often a good idea that you seek a short term lease with options for further terms.
Business contracts are notoriously complex. Terms of trade are a case in point. Too many businesses simply use standard terms or copy another businesses terms to save money at the beginning. This is poor business practice and often proves to be problematic later. As one example, should your business carry out work and your terms of trade are loose with respect to retaining title to those goods (and this part of the law as undergone many changes), one might find oneself unable to get paid if the other party goes broke. In this case, not knowing what to do can be costly. Terms in your contract should be well drafted for your protection.
The comments in this article should not be construed as legal advice, as each situation is unique. Always consult a lawyer for legal advice in relation to your business matter.
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