Business Lasting Powers of Attorney

Business Lasting Powers of Attorney Solicitors

A Business Lasting Power of Attorney lets you appoint someone to make business decisions on your behalf. It’s a good way to help make sure the right person can take business decisions if you cannot do so yourself.

Our Business Lasting Powers of Attorney solicitors can listen to your circumstances and advise you on the next steps. We can also help you choose suitable attorneys and prepare the documents properly. Get in touch today to learn more.

What is a business lasting power of attorney?

A Business Lasting Power of Attorney (Business LPA) is a legal arrangement. It lets you appoint one or more people to deal with your business affairs should you be unable to do so.

The person you appoint is called your attorney. Depending on how the document is prepared, they may be able to make decisions about:

• Business banking
• Paying bills
• Handling contracts
• Dealing with staff, suppliers and day-to-day management.

A Business LPA can be particularly useful if your business relies heavily on you. Without one, even a short period away from the company could cause practical problems.

Is a business LPA different from a personal LPA?

Yes, a personal LPA and a Business LPA are different types of arrangements. While they sound similar, they deal with different parts of your life:

1. A personal Lasting Powers of Attorney covers your own finances, property, bills and health matters.
2. A Business LPA deals with your commercial and business interests.

You may choose the same attorney for both. However, this isn’t always the best option. This is because someone who can handle your personal finances may not have the right experience to make business decisions. For this reason, many business owners prefer to keep personal and business LPAs separate.

Why do I need a business LPA?

Many business owners are used to making important decisions themselves. However, unexpected events can happen, and the absence of the usual decision maker can cause problems.

For instance, a business owner may become ill, injured or unable to make decisions. In these situations, the business still needs decisions, payments and instructions to be made. A Business LPA gives clear authority to the person you choose. This helps the business continue to run as smoothly as possible.

What happens if I don’t have a business LPA?

Without a Business LPA, no one may have legal authority to deal with your business affairs. This can cause problems with bank accounts, wages, supplier payments, tax, insurance and many other important decisions. In some cases, an application may need to be made to the Court of Protection before someone can act. This process can be stressful and take time.

Not having one may also mean that the person appointed is not who you would have chosen yourself. Instead, by making a Business LPA, you can decide who should act for you and what powers they have.

Who should make a business LPA?

A Business LPA can be useful for many different types of business owner, such as:

• Partners or sole traders
• Company directors
• Shareholders in private companies
• Any owner with staff, suppliers or ongoing contracts.

Whether or not a Business LPA is right for you depends on the nature of your company. Our Business Lasting Power of Attorney solicitors can review your circumstances and advise the most suitable arrangements.

What can a business attorney do?

A business attorney can only do what the Business LPA allows them to do. This is why the document should be prepared carefully. Depending on your preferences, your attorney could be able to:

• Access your business bank accounts
• Pay staff and suppliers
• Deal with invoices
• Sign new contracts
• Manage assets and relationships.

Importantly, you can also include instructions or limits to these abilities. For example, you may want your attorney to deal only with certain decisions. You may also prefer them to speak to another person before taking specific actions. These can be arranged and clearly set out to avoid disputes and make sure your wishes are met.

Who should I appoint as my business attorney?

When you set up your Business LPA, choosing your attorney is one of the most important steps. Fundamentally, it should be someone you trust. More so, they should be someone you believe can handle your business affairs.

Depending on your situation, this may be a fellow director, for example. It could also be a business partner, senior employee, adviser or capable family member.

It’s possible to appoint more than one attorney. If you do so, you can also decide whether they must act together on all decisions. Speaking to a Business LPA solicitor can help you talk through these options and make the most informed decision.

Can I use my personal LPA as my business LPA?

It’s possible to nominate the same person to be your Business LPA and personal LPA. However, there may be good reasons to choose somebody else as your Business LPA. This is because your personal attorney may not understand the inner workings and requirements of your business.

In many cases, having a separate Business LPA can be clearer and more reassuring for everyone involved.

Does a business LPA replace a succession plan?

A Business LPA doesn’t replace a business succession plan. It also doesn’t replace making a will or any business shareholder agreements regarding inheritance after death.

Instead, a Business LPA deals with what happens during your lifetime should you not be able to make decisions. Many business owners create a Business LPA alongside their personal wills, trusts and probate matters.

How do I make a business lasting power of attorney?

Making a Business LPA requires some planning and legal documentation. While the process can vary depending on your circumstances, it generally involves:

1. Reviewing your business structure and choosing suitable attorneys
2. Deciding what powers the attorneys should have and any limitations
3. Preparing the LPA documents and signing them correctly
4. Registering the LPA with the Office of the Public Guardian.

A Business LPA can’t be used until it has been registered. If mistakes are made in the documents or signing process, this can cause delays. For this reason, we’d always advise putting a Business LPA in place before you need to use it.

Can a solicitor help with a business LPA?

It’s possible to create a business LPA yourself. However, as they are a complex legal document, there is potential to complete a Business LPA incorrectly.

A Business LPA solicitor can help make sure everything is suitable for your circumstances and prepared correctly. This is particularly important if your business has partners, shareholders, employees and more complex financial matters.

Why choose Vincents’ business lasting powers of attorney solicitors?

Your business is something you’ve put countless hours into building. If you can’t make decisions, even for a short time, it’s important that the right person can on your behalf.

Our Business LPA solicitors will listen to your business and personal circumstances. We can then give clear, practical advice on the best way forward, including personal planning matters, should you wish.

Regulated by the SRA, we’ll provide you with full transparency over costs and timescales throughout the process. Contact us today to get started

Frequently asked questions

What’s the difference between a business LPA and a personal LPA?

A personal LPA gives instructions on your personal finances or health and welfare. A Business LPA deals with your business affairs. Some people benefit from having both, especially if their business life is entirely separate from their personal finances.

Do all business owners need a business LPA?

Not every business owner needs a Business LPA. However, it’s worth considering if your business depends on your decisions. They’re particularly useful for sole traders, company directors, partners and shareholders.

Can my spouse or family member be my business attorney?

A family member can be your attorney for a Business LPA – but they may not always be the best choice. Your attorney should be someone who understands the business and can make practical decisions. A business partner, employee or adviser could be better placed to do so than a family member.

Can I appoint more than one business attorney?

You can appoint more than one attorney in your Business LPA. You can also specify how they should act. For example, they may need to act together on all decisions. You might also allow them to make some decisions separately.

When can a business LPA be used?

A Business LPA can be used once it’s been correctly completed and registered. It can then generally only be used if you lose mental capacity. However, you may allow it to be used before then in some cases. A Business LPA solicitor can help you decide which approach is most appropriate.

Does a business LPA replace a will?

A Business LPA only applies during your lifetime. As such, it doesn’t decide what happens to your business after your death. For this reason, many business owners make a will at the same time as a Business LPA.

How often should I review a business LPA?

It’s sensible to review your Business LPA from time to time, especially if your business changes. A Business LPA should remain practical and up to date. If it no longer reflects the reality of your business, it might not work as intended.

Can I change or cancel a business LPA?

It’s usually possible to change or cancel a Business LPA while you still have mental capacity. In fact, if your business, attorney or circumstances change, it’s sensible to do so. A Business LPA solicitor can advise you on whether a new arrangement is needed.