Introduction to Business Protection at RAE Financial Advisory Services Ltd
Businesses, whether large or small, are likely to encounter the unexpected at some point. Having business protection in place is essential for allowing businesses to survive during the recovery period. Enabling the business can recover quickly and minimise the impact should the worst happen. Whether you are in a partnership, limited liability partnership (LLP), a sole trader, or a Limited company.
Business protection can encompass the following:Â
Key person protection, shareholder protection, partnership protection, business loan protection, employee death in service, critical illness protection, and employee income protection. These are the fundamental aspects of the comprehensive business protection solutions that we offer at RAE Financial Advisory Services Ltd intended to safeguard your business against potential risks like these:
Let me ask you a few questions as you are busy with work to earn a living and you are not paying attention to the following:-
- What happens to your business if your circumstances change unexpectedly, such as your premature death or illness? This is especially relevant if you were in partnership with someone else in your business.
- What are the financial implications and consequences for your family and the business?
- What are the financial implications and consequences for your family and the business?
- Does your business partner, if any, have the financial capital to buy your business at fair value?
- What would happen to your business as a result of the loss of a key person?
- What plans are in place to mitigate such setbacks or financial strain caused by the potential loss of your business's revenue, recruitment costs, hiring and training costs for replacing a key person, as well as any outstanding debts or obligations related to your business during the transitional period?
Frequently Asked Questions FAQ
This is to retain your employees as your employees feel valued by your business and to provide tax-efficient life cover to small or large business employees with a fixed amount of life cover (not related to their salary multiples). The life cover cost is funded by the employer which is classed as a business expense to the employer (corporation tax relief) and is not classed as a P11D benefit in kind to the employee. This expense does not attract National Insurance Contributions to both the employer and the employee.
This Death In Service DIS can be placed in trust for the benefit of their beneficiaries and will be outside their estate.
In the event of a key person’s sudden illness or death, a business’s ability to repay certain debts, such as corporate bank loans, is protected.
Individuals who possess crucial knowledge, skills, and expertise that contribute to business operations, profitability, and business growth. This may include the business owner, the sales manager, or another key employee, are all individuals who could be considered the key person.
The company can manage financial challenges caused by the loss of the key by receiving a lump sum payment from the insurance policy. The policy will be triggered when a key person covered by it passes away or is unable to work due to a critical illness or injury.
The cost of working with RAE Financial Advisory Services Ltd depends on the services you require and the complexity of your financial situation. We offer transparent pricing and will discuss fees with you upfront.
The amount of tax we save you in tax and manage your risk far outweighs our cost.
The cost of working with RAE Financial Advisory Services Ltd depends on the services you require and the complexity of your financial situation. We offer transparent pricing and will discuss fees with you upfront.
The amount of tax we save you in tax and manage your risk far outweighs our cost.
What is Shareholder or Partnership Protection and Why do you need it?
All companies are required to have a memorandum and articles of association, which include the company’s name and registered office. In contrast, the articles of association outline the rules for managing the company’s internal affairs, which will cover issues like transferring and selling shares.
In the world of business, your company’s success often relies on the collaboration of its shareholders. But what if one of your fellow shareholders were to die or become seriously ill? How would their shares be handled? How is your business going to face disruption or financial strain?
In order to maintain financial security, business stability, and continuity, particularly in private limited companies with a small number of principal shareholders – following the unfortunate loss of a shareholder, it is crucial to provide a safety net. Please consider this scenario in a limited private or limited liability partnership LLP with 3 co-owners of a business.
Shareholder A with 25% ownership
Shareholder B with 25% ownership
Shareholder C with 50% ownership
- What are the financial implications on the remaining shareholders (A & B)?
- Would they like to lose control of the business and be forced to sell the remaining 50% to a 3rd party?
- What would be a fair price for the remaining 50% of the ownership shareholding?
- What if the deceased shareholder’s spouse does not want to sell the 50% ownership shareholding of the business and wants to get involved in the business decision-making?
- Do the remaining shareholders (A & B) have the financial capital to buy the remaining 50% of the business at fair value?
- Do the remaining shareholders (A & B) have a binding arrangement to buy the remaining 50% of the business at fair value?
- What financial disruptions and time scale will take to resolve this? Disputes can arise, and the business’s financial stability may be at risk leading to financial strain, or even the dissolution of the business.
BUSINESS PROTECTION ADVICE FAQ
RAE Financial Advisory Services Ltd offers a personalised approach to financial planning, ensuring that your plan aligns with your goals and aspirations. Whether you’re looking for Key person protection, shareholder protection, partnership protection, business loan protection, employee death in service, critical illness protection, and employee income protection
Working with RAE Financial Advisory Services Ltd gives you access to truly independent and unbiased financial advisors in the UK who can help you make informed financial decisions, maximise your wealth, save you paying tax than necessary, utalise your tax-free personal allowance, manage your wealth tax efficiently, reduce your investment charges and achieve your long-term financial goals.
The amount of tax we save you in tax and manage your risk far outweighs our cost.
Start Your Protection Journey with RAE Financial Advisory Services Ltd
Take control of your protection future today by partnering with RAE Financial Advisory Services Ltd. Contact us today on 07957656773 to schedule a free no obligation consultation and discover how our experienced financial planners can help you achieve your financial goals and build a secure future for yourself and your loved ones.