Why Writing A Will Is Essential For Business Owners
Business has so many different aspects to it, this page aims to cover all the different areas that the majority of business owners rarely think about.
Why Writing A Will Is Essential For Business Owners
Most people tend to be lulled into the false sense of security that they don't even have to think about a will yet, because they’re nowhere near a certain age. In addition, deciding what would happen to your positions if you passed away isn’t exactly the most pleasant task, but as a business owner it is most definitely something that needs to be done. It will ensure that your assets are shared between the right people, rather than them ending up in the wrong hands.
Without a will, all of your possessions end up in the hands of the law, who then decide which assets go to who. There are a number of routes to go down to make sure you are covered on this front, but whether you contact a will solicitors in Manchester or L.A, you can ensure you are covered on this front.
In some cases where people have passed away, their family home has had to be sold in order to cover their business costs. This is a troubling notion for anyone to consider, and can sometimes result in the family need a dispute resolution - which is one of the last things they would need at the time. Once you own a business and have business assets, it makes everything far more complicated. It would be devastating if a business that you spent years building up had to shut down due to your death. Furthermore, this could mean that tens or hundreds of your employees would also lose their job which would be a real shame, especially when this could have been avoided with some careful planning.
A will also significantly reduces the risk of your business having to shut down due to a legal battle. For example, when the law distributes your assets, they could split your business equally between your next of kin. If it was really supposed to go to just one child (because they had actually worked alongside you in the company), then this could result in a heated and lengthy dispute and immense emotional distress for your entire family.
When you do decide to write up your will, it is important that you consider succession planning, which will increase the advantages of Business Property Relief. This will alleviate inheritance tax for your business, which is a vital area to be precise about in your planning. It ultimately protects your loved ones from being struck with hefty inheritance tax.
The sooner you start planning your will the better to ensure that you and your loves ones are covered, should the unthinkable happen. Don’t be tempted to leave it until you are growing old or becoming ill, having a will in place will protect your business and your assets in the unfortunate event of sudden death. Even if you’re unsure where to start, take the first step by speaking to will solicitors about your options. This will clear up unanswered questions and set you on the right tracks.
Brexit’s Effect on the Start-up Market
Whatever your feelings are over Brexit, or whichever way you voted, one thing is for certain; since the 23rd June there has been a lot of uncertainty surrounding it.
With it announced this week that the Queen has signed Article 50, this signals the start of Theresa May holding formal talks to leave the European Union. As it was announced earlier in the month that by the end of March she will invoke Article 50 - the official legal mechanism for withdrawal, this comes as no surprise. This officially begins the 2 year countdown until Brexit, and May has said it will be a ‘defining moment’ for the country.
Perhaps this new action will finally start shedding some light, and much needed answers surrounding Britain’s exit. Business owners have particularly been left feeling uncertain, with the effects of Brexit already taking its toll, and that’s before we’ve officially left. With the value of the pound continuing to oscillate, the future of government funding unknown, the future of many businesses hangs in the balance.
Brexit is going to have an effect on the entrepreneurial scene, notably within the business development, finance, education and immigration. Here’s how.
As a leading city in technology, London is likely to lose this unique ‘ tech capital’ status due to Brexit. This is because knowledge will become decentralised and become dispersed out away from this central hub. This has been in the pipeline for London for a while, and comes as no real surprise, Brexit merely heightened this fact. In the future however, we can expect to see major European cities such as Paris, Barcelona, and Berlin follow on in London’s footsteps.
According to the financial times, since Brexit, 5 London based companies have already moved to Berlin and 39 others are considering the move. It is not just entrepreneurial businesses jumping ship either, major companies such as Lloyd’s of London have begun their plans to move out of the capital. Whilst London will remain a strong central hub for many businesses, being a leading financial core, and with strong networks with the US, it still attracts significant amounts of capital. Despite this, it won’t be enough for everyone, with the appeal of relocating becoming increasingly popular. With Brexit responsible for curbing firms investing in UK based properties, it is likely companies will want to relocate parts of their teams to various european cities in search of better quality of life, cheaper labour costs, saving them money and relieving extensive business problems that would occur if they were to remain. Nonetheless C-level executives are most likely to stay in London, where the networking opportunities, and tax advantages are much more advantageous.
The government needs to invest in grants, and lowering taxes for businesses to increase the ease of living, making costs cheaper and overall improving quality of life if they are to entice small business and start-ups not to stray.
The constant fluctuating value of the pound since June last year has made it now cheaper to raise funds in Euros, and then spend these in the UK. The difficulty is that salaries will also have to adjust to these changes, the two currencies are always going to be in objection. At the moment the Euro seems safer, and so this holds the focus of most entrepreneurs. This is likely to mean funding will be sought elsewhere, away from the UK and in major European cities, think, Paris, Barcelona and Berlin, (again.) This could go two ways, with the positive being a stronger united start-up community in other dominant european cities. The latter, and more negative outcome would be that the demand for funding could just become unreasonable. As we are still in the early stages of Brexit, it is unclear which way it will go.
Education and Immigration
Prior to Brexit, London was an appealing place to study. Particularly to budding engineers. However future engineers may look to approach other leading universities in Paris, or Berlin. Whilst London will probably still remain attractive to the Business and Finance sector of education. These change will be tough on the UK, with the decentralisation of knowledge taking its toll.
Immigration is of immense concern following brexit, and this is only expected to increase with thousands already rushing to apply for British citizenship in order to remain. With the UK and Europe's combined freedom of movement between the two an appealing factor in choosing them, this is no longer the case, with movement now limited and confused. There is much more to think about now before a company sets up a European office, with exact locations looking much less likely to be London.
Nothing is completely clear succeeding Brexit in the business environment, as the months go on it will become more clear the exact implications upon various aspects. What we do know though is a huge importance has been stressed regarding getting eea pr application’s filed now to give immigrants the best chance of stay. What is even more transparent though is that finance, business development, education and immigration have already been affected, and will continue to as the details unfold.