LPAs for business owners
Guidance from Estate Advisory Group
Written and legally reviewed by Ramani Gill TEP, Solicitor and private client practitioner·Last reviewed 13 August 2026
If a sole trader or director loses capacity, the business can stop trading within days. A standard personal LPA is rarely the whole answer.
What goes wrong
- Sole traders: no signatory, so wages, suppliers and VAT go unpaid.
- Companies: articles may not allow another director to act alone, and shares cannot be voted.
- Partnerships: the partnership agreement may treat incapacity as automatic dissolution.
- Banks freeze business accounts as soon as capacity is questioned.
The usual structure
Many owners make two financial LPAs: a personal one naming family, and a separate business LPA naming a co-director, business partner or accountant, with instructions limiting them to the business. The two documents must not overlap or contradict each other, and the business one must fit the company's articles or partnership agreement.
This is solicitor territory
Business LPAs involve drafting, checks against your articles, and tax and succession considerations. Our guided questions flag business assets and recommends regulated advice — we are built for straightforward personal LPAs.
What you can still do with us
Plenty of business owners use us for their personal LP1F and LP1H and use a solicitor for the business document. If that is you, the personal side takes about half an hour: start your LPA.
A worked example
Nadia runs a small design agency as a limited company with one co-director, Sam. Her solicitor drafts a business LPA naming Sam as attorney, limited to signing contracts, paying suppliers and staff, and operating the business bank account, checked against the company's articles of association. Separately, Nadia uses our service for her personal LP1F and LP1H, appointing her husband. The two documents are worded so neither attorney has authority over the other's area, avoiding any overlap.
By business structure
| Structure | Typical solution |
|---|---|
| Sole trader | Business LPA naming a trusted employee or family member as signatory |
| Limited company | Check articles; may need a business LPA plus a board resolution |
| Partnership | Review the partnership agreement's incapacity clause before drafting anything |
| Personal assets only, no business | A standard personal LP1F is usually enough |
Why timing matters
Banks act fast on incapacity
Business bank accounts can be restricted as soon as a bank becomes aware of a capacity concern, sometimes within days. A business LPA agreed and registered in advance avoids the business grinding to a halt while a Court of Protection application is prepared.
Common questions
Can one attorney handle both personal and business affairs?
They can, but it is often unwise: the skills differ and mixing the roles can create conflicts of interest.
Does a shareholders' agreement remove the need?
It may cover voting or share transfer, but it cannot give anyone authority over your personal assets. Both usually need attention.
How much does a business LPA cost?
It varies with complexity, but expect solicitor fees well above a standard personal LPA, reflecting the drafting and review of company documents involved.
Can an accountant be my business attorney?
Yes, professionals are often appointed for this precise reason — see professional attorneys and fees for how charging works.
Read next
Where this fits
This page is part of Parents, couples and capacity. The pages below take it further.
- Make an LPA online
The whole journey end to end: questions, documents, signing and registration.
- What an LPA costs in 2026
Our £49 and £79 prices, the £92 OPG registration fee, and solicitor comparisons.
Review and sources
Reviewed by Ramani Gill TEP, Solicitor and private client practitioner. Last reviewed 13 August 2026. We recheck fees, forms and Office of the Public Guardian guidance whenever they change — see our editorial policy.
Official sources
Helping a parent or partner?
They make the decisions and sign, you can do all the paperwork. Start with the free capacity check.
The Office of the Public Guardian charges a separate £92 to register each LPA.
This is general information about how Lasting Powers of Attorney work in England and Wales. It is not legal advice about your situation. What we do and do not do.
Published by Estate Advisory Group