A Commercial LPA is tailored specifically to a business and is considered in the legal documents, including Articles of Association, Shareholder and Partnerships Agreements, different to that of a personal (individual) LPA. 
Why do you need an LPA for a business? 
In the event of you being unavailable to make decisions, with a business LPA, an appointed Attorney will have the authority to continue running the business, for example to pay wages, sign cheques, to access the business account and to pay bills. 
What happens in the absence of a business LPA? 
If capacity is lost and a business is owned, the bank are likely to freeze the business accounts and the only way forward would be for someone on your behalf to make an application to the Court of Protection to apply for a Deputyship Order. This process can take up to six months to be granted and can be very expensive, not to mention the disruption caused to the business in order to continue operating. 
Legal Entities - How it works: 
⇒ Sole Trader 
As an Owner of a Sole Trader business, without any provision, there will be no one to continue to make important business decisions on your behalf, unless there is an Commercial LPA in place. 
 ⇒ Partnership 
There could be a Partnership Agreement in place which will determine what happens if a Partner is no longer able to make decisions. It is advisable to check this first, before a Commercial LPA is drawn up, to prevent any conflict between both documents. 
 ⇒ Limited Company 
As a Director of a Limited Company, the Articles of Association could contain certain provisions in regards to what could happen if you or a Co- Director lose capacity. Both documents again should be checked first to ensure they do not conflict with one another. 
* Business partners do not automatically have the right to become an Attorney, unless the agreement states otherwise. 
In the event of  a Sole Director (Limited Company), or a Sole Proprietorship -  If capacity is lost and the ability to make informed decisions is in question, then the business is likely to suffer as a result.  By having a Commercial LPA in place this will allow the appointment, with authority to make those important decisions on your behalf, to secure the longevity of the business, which otherwise could be wound up or sold. 
It is important that the LPA is registered while the donor still has the mental capacity to do so. 
There is a lot to consider when dealing with commercial LPAs and it is advisable to seek professional expertise in dealing with these matters.  
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