Have you stopped to consider what would happen if you were not around or unable to deal with the day to day running of your business?
When you put a lot into setting up, establishing and then growing your own business there can be serious consequences if you are not able to make decisions about its running.
You may be taken ill or have an accident, it may something as simple as a delayed flight or airport strike that prevents you from getting back to your desk.
It can mean no-one to access the bank, suppliers and staff not being paid, contracts being lost as there is no-one to sign them. It does not even have to be a dramatic event that can cause these problems.
Chances are you have not thought about the number of decisions you make in your daily working life or whether anyone could make those decisions on your behalf if you were unable to do so. This applies whether you are a sole trader, partner in a business or a director.
A Commercial Lasting Power of Attorney is a great way to make sure that this is not a problem for you and your business
You may already have an LPA for your personal affairs, which would cover business decisions, but is your nominated attorney for that the right person to be making business decisions for you?
Your appointed Attorney should be someone you trust and who knows you and your business. You can chose more than one Attorney such as a business associate and a family member but you need to be confident that they could work well together and would act in the best interests of you and your business.
With an LPA, your Attorney can do anything that you would have been able to do yourself. This can include buying and selling property, accessing bank accounts, entering into contracts, dealing with tax affairs, making investments etc.
At all times however your Attorney has to act in your best interests and can be held to account for decisions made if considered to be in breach of their power.
We all ensure that our valuable assets are protected with insurance whether that is life, buildings or vehicle cover etc. Having a Commercial LPA should be as instinctive and as routine as having insurance. After all, we all want to protect what we have worked hard for.
It is worth bearing in mind that the cost of legal advice and obtaining a Commercial LPA is a recognised and legitimate business expense, so it can be offset against tax liabilities.
To make sure that your business is secure seek legal advice from a suitably qualified and experienced solicitor.