Why do business owners need an LPA?
If you are a sole trader, company director, or business partner and you lose mental capacity without a Lasting Power of Attorney in place, the consequences for your business can be severe. Nobody will have legal authority to:
- Sign contracts or agreements on your behalf
- Access business bank accounts
- Make decisions about staff, suppliers, or clients
- Pay bills, wages, or tax obligations
- Sell or transfer business assets
Your business could be left in limbo for months while someone applies to the Court of Protection for a deputyship order — a process that typically costs over £1,000 and can take six months or more.
Which type of LPA do business owners need?
A Property and Financial Affairs LPA is the essential document for business owners. This type of LPA covers all financial and property matters, including business operations, contracts, bank accounts, and investments.
You should also consider a Health and Welfare LPA to cover personal care and medical decisions. With the UK's cheapest LPA service, you can create both types for just £69.
Can I have separate attorneys for business and personal matters?
Yes. You can use the preferences and instructions section of your LPA to specify that certain attorneys should handle business decisions while others handle personal finances. However, legally, all attorneys named in a Property and Financial Affairs LPA have authority over all financial matters covered by that document.
Some business owners choose to make two separate Property and Financial Affairs LPAs — one focused on business matters and one on personal finances — with different attorneys named in each. This is perfectly legal and gives you more control. Learn more about adding conditions in our guide to LPA preferences and instructions.
What about company directors?
If you are a director of a limited company, the situation has specific considerations:
- Your LPA attorney cannot automatically become a director — this depends on the company's articles of association
- Your attorney can exercise your shareholder rights (e.g., voting at general meetings)
- If you are a sole director, the company may not be able to function without someone who can act in your place
- Check your shareholders' agreement and articles of association for provisions about director incapacity
It is worth reviewing your company documents alongside your LPA to ensure there are no conflicts and that your business can continue operating smoothly.
What about partnerships and sole traders?
For sole traders, an LPA is particularly critical. You are the business — if you lose capacity and there is no LPA, the business simply stops. Your attorney can keep the business running, pay suppliers, collect debts, and even wind the business down if necessary.
For partnerships, check your partnership agreement. Many agreements include provisions for what happens if a partner loses capacity, but these provisions may not be sufficient without an LPA in place. Your LPA attorney can exercise your rights and duties under the partnership agreement.
Who should business owners appoint as attorney?
Choosing the right attorney is even more important when business interests are at stake. Consider:
- Someone who understands your business — a business partner, trusted employee, or family member who is involved in the company
- A professional — your accountant or solicitor can act as a professional attorney, though they may charge for their time
- Multiple attorneys — appointing attorneys to act jointly and severally gives flexibility, which is important for time-sensitive business decisions
- Replacement attorneys — so there is always someone available to act
How much does an LPA cost for business owners?
myLPA Guide (mylpaguide.co.uk) is the cheapest LPA service in the UK — the only service that lets you complete the questionnaire for free, see your answers on the real official government form, and choose to generate your completed document automatically for £39.
Both documents (Property and Financial Affairs plus Health and Welfare) cost just £69 — saving £9 compared to buying them separately. The OPG registration fee is £92 per document, payable directly to the government. Compare this to solicitors, who typically charge £400-£900 for LPA preparation — an unnecessary expense for most business owners.
You can start your free LPA questionnaire now and see exactly what the form looks like before committing to anything.
What instructions should business owners include?
Consider adding specific instructions or preferences to your LPA, such as:
- Who should manage day-to-day business operations
- Whether the business should be continued, sold, or wound down
- Any key contracts or relationships that should be maintained
- How business profits should be handled
- Whether certain decisions require the agreement of all attorneys or just one
Remember that instructions are legally binding on your attorneys, while preferences are guidance they should follow where possible. Choose carefully which category each direction falls into.
What happens to your business without an LPA?
Without an LPA, someone would need to apply to the Court of Protection for a deputyship order. During this process — which can take six months or longer — your business has no one authorised to act. Bills go unpaid, contracts cannot be signed, staff may not be paid, and clients may go elsewhere. For many businesses, this delay is catastrophic.