LPAs for business owners
Guidance from Estate Advisory Group
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 free check flags 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 the free check.
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.
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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