Navigating the legal landscape - Key tax and legal considerations for start-ups

One of the hallmarks of start-ups and growth companies is that there is always something happening. Companies are formed, owners change, deals are struck and funding is raised.

That's why it's important to know where to turn for help. With expert's advice, legal and tax requirements can be resolved and opportunities can be exploited in the most advantageous and timely manner.

Working with experts is about dialogue. Start-ups can explain their long-term goals, and financial, tax and legal experts can explain the steps needed to get there. The overall picture and future plans are agreed together and the planned actions are taken to achieve the goal. In this way, the costs of tax consequences, regulatory fees and advice become manageable and predictable.

Without exception, entrepreneurs need legal and tax expertise. So it is not worth relying on luck.

Best recipe for start-up success - get legal documents in order

The number one piece of advice from our legal experts is all about paperwork. Get it right the first time.

With so much going on and deadlines to meet, it can be easy to forget even important legal documents. But fixing mistakes after the fact can feel like putting a small sticking plaster on a big open wound.

So our best advice to start-up entrepreneurs is this: Be early and ask before you do. In general, proactive expert help is a much more cost-effective solution than fixing problems after the damage has been done.

By taking a planned approach, legal and tax experts can provide the best possible support in areas such as restructuring, ownership planning, various change situations, employee incentive schemes and shareholders' agreements. For example, if you are planning to build your business so that you can sell it in 10 years' time, it would be ideal to organise your ownership structure today so that the acquisition can be handled in a sensible and tax-efficient way.

How do you stay on top of tax planning and risk mapping?

Tax and legal issues require in-depth knowledge. And, as mentioned, there are a lot of other things on a business owner's desk. So keeping up - anticipating and planning - can naturally fall to the bottom of the to-do list.

While it can be difficult for a start-up to find internal resources to optimise tax issues and identify risks, it pays off to invest in expert help - you get quality results quickly and save time and money.

Tax professionals can help you make sure you pay the right amount of tax - not too little, but not too much. They will ensure that you are aware of potential tax deductions and credits that can reduce your tax liability. Common deductions include business expenses such as rent, utilities, and equipment purchases. In addition, depending on the country you are in, you may be eligible for tax credits for research and development, hiring employees from certain demographic groups, or investing in renewable energy.

Flexible and agile tax and legal services for start-ups

Especially for start-ups, the best way to stay on top of tax and legal issues is to ask for advice. And it's easier to ask for advice when you have a trusted sounding board and sparring partner.

Greenstep has a client base of over 2000 organisations. These include numerous small and medium-sized start-ups and growth companies that do not have their own legal department or tax experts.

We understand the special tax and legal needs of start-up and growth companies and offer a customised legal and tax workshop, where our experts will check that important documents are in order and tax matters are optimised.