Property
The majority of start-up businesses will require some form of premises out of which to operate. This can range from the sole trader using the spare room in his house as an office to a manufacturing start-up requiring factory premises and warehouse storage.
Apart from the case of a sole trader using a room in his own house (in which case the property's deeds should be checked to make sure such use is allowed) it is desirable for the business's use of a premises to be formally documented.
The business's interest in the property can take one of two forms:
If the business is to rent its premises then a formal lease should be put in place. This is true even when the landlord is one of the partners in the business or one of the directors/shareholders in the company.
The business may have sufficient funding and consider it desirable to purchase its premises outright. Like any property purchase this will involve carrying out relevant searches in relation to the property and the payment of stamp duty if the value of the property exceeds £150,000.
For more information please contact Jo Thirsk
Apart from the case of a sole trader using a room in his own house (in which case the property's deeds should be checked to make sure such use is allowed) it is desirable for the business's use of a premises to be formally documented.
The business's interest in the property can take one of two forms:
Lease
If the business is to rent its premises then a formal lease should be put in place. This is true even when the landlord is one of the partners in the business or one of the directors/shareholders in the company.
Freehold
The business may have sufficient funding and consider it desirable to purchase its premises outright. Like any property purchase this will involve carrying out relevant searches in relation to the property and the payment of stamp duty if the value of the property exceeds £150,000.
For more information please contact Jo Thirsk
