Business LPA: Do You Need One?

Running a business means you make important decisions every day. But what would happen if you became suddenly unavailable — due to illness, accident, or even being abroad? Could someone step in and keep things running smoothly?

That’s where a Lasting Power of Attorney (LPA) for your business can help.

A business LPA is a Property and Financial Affairs LPA, tailored to your business needs. It gives someone you trust (your attorney) the legal authority to make decisions on your behalf — like accessing business accounts, paying staff, signing contracts, or handling bills — if you’re unable to.

It differs from a personal LPA because it focuses only on your business affairs and should consider key documents such as:

As a sole trader, you are the business. If you lose capacity, no one can legally make business decisions for you — unless you’ve set up an LPA. Without it, your business may have to stop operating.

Check your partnership agreement. It might already include rules about what happens if a partner becomes incapacitated. If not, a business LPA is a smart backup.

Company directors are governed by Articles of Association, which may say what happens if a director can’t act. Always check these first, as they may affect your choice of attorney or require additional steps.

To avoid confusion between your business and personal finances, it’s good practice to have two separate LPAs:

• Business LPA example wording:

“My attorneys only have the authority to use my business accounts and make decisions relating to my business. They are not permitted to use my personal accounts or handle personal finances.”

• Personal LPA example wording:

“My attorneys only have the authority to use my personal bank accounts. They are not permitted to access business accounts or make business decisions.”

This keeps your finances clearly separated and avoids problems down the line.

Think carefully — a family member might not be the best fit. Your business attorney should:

• Understand your business
• Be trustworthy
• Share your business goals

This could be a business partner or a professional attorney (fees may apply).

If you lose capacity without an LPA:

• Bank accounts may be frozen
• No one can legally run the business
• Someone will need to apply to the Court of Protection for a Deputyship Order — which can take up to 6 months and be costly

This delay could harm your business — staff may not be paid, and operations could grind to a halt.

• There’s no official “business LPA” — it’s simply a tailored Property and Financial Affairs LPA
• Always check any shareholder or partnership agreements for restrictions on attorneys
• If you want the same attorneys for personal and business matters, only one LPA is needed — just make sure it includes or excludes business powers as needed

Losing capacity can happen at any time — don’t wait until it’s too late. Putting an LPA in place ensures your business keeps moving, no matter what happens.