You are a solicitor specialising in small business start ups and expansion.
Homer has a small business – V-Engines. He designs and builds engines for other companies and, due to increases in his order book, has recently leased a large warehouse with offices. He is not sure whether to continue to run his business as a sole trader or to obtain limited liability. He has two people working with him on a self-employed basis in the workshop and has identified that he needs two more, plus someone to work in the office full-time.
Highlight to Homer the different types of business he may operate, including coverage of legal responsibilities and the advantages and disadvantages of each type. You should also state any regulations that Homer must adhere to if he decides to change his business formation to that of a company. You also need to ensure that he is aware of his legal obligations with regards to those who currently work with him and those he intends to recruit.
If Homer does choose to set up a company highlight what his responsibilities would be as a Director and in what circumstances he may be disqualified. Your response should be in the form of a written report. The learning outcomes for this assignment are:
Identify and investigate ‘legal problems’ for businesses and suggest solutions to the same
Improve self learning skills by being able to effectively analyse a law report and piece of legislation and to tackle comprehensive case studies and problem scenarios