Legal aspects
Legal status and liabilities
My legal status is a private limited company and my liabilities are limited. A private limited company is normally owned by shareholders who are good for the company as it means that they will be investing some of their money into the business. The more money the business will get, the more they will spend on resources and assets. Therefore, the business will be more profitable and will make further growth. One of the benefits of having a limited company is that it has limited liability meaning the shareholders are safe in term of getting involved in the business’s debts and their personal assets will be untouched. This is because they will be paying off debts with the company’s capital and not their own money. Another advantage is that the organisation will be ongoing even if one of their shareholders pass away or sell off their shares.
However, there could be some problems with dealing with other members of the company, as decision making will be slower and difficult. This is because everyone will have a different opinion of how to run the business which could lead to disagreements. At the same time, the legal formalities of the business will be more complicated as they will have to get a licence and all shareholders will be needed to make legal decision for example making sure that they follow the Data Protection Act so their information do not get pass to other businesses. One major drawback is that profit will be shared amongst shareholders.
Trading standards and licences
Trading standards is design to protect customers from dishonest traders. The trading standard has an institute that provides advice to consumers and they ensure the protection, health and wellbeing of consumers and make business’s competition process and success easier. The TSI make sure people are aware of business and their deeds as some of them to illegal dealings. They also make sure that members can develop their professionalism and competencies. In relation to my business it will allow me to know more about consumer’s rights about what they expect from the business. It will also help me to identify and find a good supplier who can be trusted and has not been involved in any illegal dealings. Furthermore more, I will have to make sure that my products and services meet all legal safety requirements and I do fair trading.
License
A business needs a license to operate for the safety of the business and for customers to get the right service. They are normally issued by authorities and it shows an agreement between he two parties involved.
Record keeping
Record keeping is very important to business so they can track their progresses and weaknesses. This will also allow them to record financial information so they can check on their assets and liabilities. Financial record is considered to be kept for at least 6 years and this includes their cash book, sales/purchase ledger and wages/petty cash books.
Ø Cash book - this is a record of money inflows and outflows. It has all the details about cheque deposits and payment s made which also includes every credit/debit transactions made.
Ø Sales/purchase ledger – a sale ledger records all sales made by the company and a purchase ledger records all the items bought by the company.
Ø Wages/petty cash book – it keeps a record of all wages and salaries that is paid by Wedding Planner whilst a petty cash book has information about all small items that is bought with cash.
There are some records that are kept by the business. They are:
Ø Accident records - it records all cases if accidents, injuries and diseases that took place within the organisation. It is normally kept for at least 3 years time.
Ø Stock records – it is used to store information about all the stock such as raw materials, assets that is bought and ordered by the business. It helps them to identify whether more resources are needed and whether they will be used efficiently.
Ø Minutes of meetings – it records all meetings taking place by the company and they are used to check whether they need to attend or carry out more meetings in the future.
National and local law
As my business is new, it is very crucial that I am aware of all the legal obligations that I need to follow. Therefore, I will have to understand the effect of the law on the firm and know how to comply with them. There are insurances that are compulsory for business. They are;
Ø Employer’s liability insurance – it ensures the health and wellbeing of employee for example if my assistant get injure, she or he will have an insurance to protect with. Hence, they can claim damages against my business.
Ø Owner’s liability insurance – this will protect my business if someone claims false damages against me.
Ø Public liability insurance – it is important for my business to have public liability insurance as me or my assistant can cause small damages to the public or property where the wedding will be held, therefore, my insurance will protect me against claims.
Legal responsibilities as an employer
Contract of employment
It is the employer’s responsibilities to provide a contract of employment to its employees. In my case, I will give my assistant a contract to sign before starting the job because we need to make an agreement first in order to avoid future problems regarding hours, pays etc. a contract of employment contains the:
Ø Number of hours
Ø Names and address of employee
Ø Job description
Ø Notice periods
It is very essential that I am aware of the Minimum wage legislation and pays my assistant at least £5.35 per hour if aged over 22 and £4.45 if aged under so I don’t get fined. The pays will also includes other pay such as maternity, sick and holiday pay. I will also make sure that the hours given to my assistant meet the working time regulations. At the same time, it is very important that I follow the discrimination Act and I don’t discriminate on the grounds of age, gender, race and disability. One of the legal requirements is to register for VAT.
Other laws
Environmental Protection Act 1990 – I will have to make sure that I don’t pollute the environment when planning for wedding venues.
Health and safety Act - this act ensure the health, safety and wellbeing of employees. Therefore, I will have to plan resources well for example making that there are no wires on the venues entrance that could lead to falling over.
By law there are some regulations to be followed such as:
Ø Data protection – this will protect my business to keep customer’s information safe which is followed by the law.
Ø E-commerce regulation – this ill allow me to sell and advertise my service using the internet.
Sources of advice
This applies to my business because it is new and it can be stressful to start up with something new. Thus, I will need some advices from professional so they can help me to deal with all types of circumstances. This will also help to build up my confidence. I also need some marketing advices so I know exactly how, when and where to advertise my service at.
Therefore, I will be setting up a websites so people can access my service quicker and cheaper.
Physical resources
My physical resources are the building where I will be operating my business in and the offices where administrations and human resources (marketing) work will be done. The size of my premises will be 60 metres square (£1000 per month) and will have two offices on the ground floor and 2 on the first floor.
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