Online startup - Legal bits and pieces required

A member asked over 8 years ago

Online startup - Legal bits and pieces required

I am launching my online start-up in the next 2 months. I need:

1)
I want terms & conditions, privacy policy, cookies policy and
whatever else I am missing in order to be covered legally. I am
launching the website as a Sole Trader, so I want to cover any liability
issues by having custom tailored terms&conditions, privacy policy,
cookies policy and whatever else will be needed.

2) I am building a house, should I transfer it to my wife's name, to avoid losing it in case things go wrong with my start-up?

I
am happy to provide with more information, I will need a fixed,
affordable quote for topic 1.

3 I want an answer

Submit an answer

Law Advisor Research Team

Researchers at LawAdvisor

Hi there. Launching a start up can be a complex process, and it is great that you are seeking some assistance to ensure everything is done properly.

The first part of your question is straightforward. If you would like some terms and conditions drafted for you, you should contact a solicitor who specialises in start up businesses. Solicitors in this area develop standard form terms which are tailored to different scenarios, and will ensure you get the best outcome possible for your business.It is an investment in the future of your startup as it will give you confidence that all the legal documents are in place.

The second part of your question is more complex. There are some problems you should be aware of that may arise with your plan to transfer property to your wife in order to avoid liability to creditors.

It is possible that the law will not consider the property to only belong to you in the first place. This is because the law presumes that anyone who has worked towards and supported their spouse in property ownership (ie helping to pay the mortgage, or being a stay at home parent, cooking, cleaning and supporting their spouse) may be entitled to a share of the property even if the property is not in their name. This is what is called a “constructive trust” and it means that transferring it to your wife may not protect your house from the creditors as you will still be deemed by the law to own part of it.

In addition, there are financial implications to transferring property to another person. The first is that you will have to pay stamp duty on the transfer, which will be calculated on the value of the property. This can be quite costly, so it is something to keep in mind. There are also potentially capital gains tax consequences. Besides, transferring the property may not end up helping you: evenif you transfer your property to someone else, a lender may still require that the house is security to any loan or that the legal owner of the house acts as guarantor for the loan.

As you probably already know, asset structure and financial planning is a complex issue, so it is important that you contact a solicitor. They will help you figure out what is the best way to protect your assets in the event your start up is unsuccessful. It is important that you know exactly what risks you are taking, and a lawyer can help with this.

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Answered over 8 years ago Legal disclaimer

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