Do You Need An LPA For Your Business?

If a business owner was to become incapacitated, they may no longer be able to manage the day-to-day running of the business. This is where an LPA for your business is required. It is a legal document, also known as a Lasting Power of Attorney. It is where the business owner can appoint a person to make decisions or act on their behalf. If you have been wondering if you need an LPA for your business, this blog post is for you.

So, do you need an LPA for your business?

If you are a sole trader, you will need a Lasting Power of Attorney for your business. This is because your business is not seen as a separate legal entity. Therefore, an LPA will ensure business continuity is you, as the sole trader business owner, loosing capacity.

A self-employed individual is seen as a sole trader. Therefore, a business Lasting Power of Attorney is required. In this case, it will allow the business to continue operating, even when you are unable to act.

It is likely the company’s Articles will cover what happens in the case of a company director losing capacity. However, if this is not the case, the business LPA will allow you to appoint someone. This person can then act on your behalf.

As partners in a partnership, it is likely that the partnership agreement will state what happens in case of incapacity. However, having a business Lasting Power of Attorney in place will provide protection and continuity.

Here at Burgh Thorpe Solicitors in Peterborough we would recommend that you speak to our corporate lawyers about your need for an LPA for your business is you travel frequently or spend a lot of time abroad. This allows someone to act on your behalf when you are away.

Want to know more about why you might need an LPA for your business and how to go about it? Speak to our corporate lawyers in Peterborough. We will be able to advise you on business affairs and succession planning to ensure your business remains protected and well-managed.