When most people hear about a Lasting Power of Attorney, or LPA, they think it’s only something individuals need as they get older or if they have health problems, but many business owners don’t realise that having an LPA can also be extremely important for protecting their business if something unexpected happens to them. Running a business means making a lot of financial and legal decisions every day, and if you suddenly couldn’t do that – if you are ill, have an accident or something else – your business could have big problems.

What Happens If a Business Owner Becomes Incapable?

If a sole trader, company director or business partner becomes mentally or physically unable to make decisions and there is no LPA in place, the business might not be able to pay staff, sign contracts, or even access their bank accounts In many cases, everything could be put on hold until a court decides who can act on the owner’s behalf, and that process, which is called applying for a deputyship, can be slow, expensive and stressful.

How Can an LPA Help a Business?

By setting up a Lasting Power of Attorney for property and financial affairs, a business owner can choose a trusted person, called an attorney, to make decisions if they lose the ability to do so themselves. This could mean things like paying bills, managing salaries or dealing with clients and suppliers. Choosing to set up a Power of Attorney online can also make the process quicker, especially for busy business owners who want to avoid lots of paperwork. You can create both types of Power Of Attorney Online – for health and welfare and for financial matters.

Should Every Business Owner Get One?

Not every business will need the same kind of LPA, but if you’re a sole trader or run your own company, it’s worth thinking about what would happen if you suddenly couldn’t make decisions. Even if you have business partners or co-directors, you might still need an LPA if you’re the only person with access to certain bank accounts or legal documents.