New year, new business: what business owners need to consider in 2026

As we step into 2026, many people are setting goals for the year.

For some, that means turning a long-held idea into reality by starting a new business. Others may be entrepreneurs looking to expand their portfolio with a fresh venture.

In 2024, 846,000 new companies were launched, according to data from NatWest and Beauhurst.

If starting a new business is part of your resolutions, we’ve brought together members of our Corporate, Commercial and Intellectual Property (IP) teams to share what you need to consider when setting up and protecting your business.

Corporate law considerations for a new business

How to legally set up your business is often the first step once you begin on your journey. Corporate solicitor Mungo Graham discusses his thoughts for new business owners:

“The right legal structure can protect founders, the business and its growth, so the choice made at inception matters.

“Sole traders and traditional partnerships offer simplicity but lack separate legal personality, so owners are personally liable for business debts and claims. Lenders and suppliers may demand personal guarantees enforceable against founders even if the venture fails. Therefore, it’s important to consider this when deciding the legal structure to take.

“When considering protection for owners, a private limited company or LLP is the more common route. Both provide limited liability and separate legal personality and enable equity participation for multiple parties. They also support option schemes to incentivise employees, clearer decision‑making through separation of the business’ legal personality from management and continuity if you choose to exit later.

“A holding company can add flexibility and ring‑fencing by separating valuable assets from trading risk. It can streamline intra‑group transfers, allow investment at different group levels and support secured financing, with intercompany agreements to govern cash flows and IP use.

“If using a company or LLP, it’s recommended to put in place a shareholders’ or LLP agreement to reserve certain matters for founders’ consent, ensure information rights for shareholders and provide dispute mechanisms. Tailored articles of association can provide nuanced share rights, vesting periods for founders and good/bad leaver protections.”

Protecting your IP

Your company name and brand are intangible assets that need protecting. Chartered Trade Mark Attorney Alice Wright shares the steps business owners need to take and what they should be aware of:

“As artificial intelligence continues to reshape the business landscape in 2026, it brings new opportunities and threats.

“One emerging concern for new businesses is the rise of AI-driven scams. These new scams increasingly use AI and other sophisticated algorithms to generate misleading emails warning of trade mark infringement or make unsolicited trade mark registration offers that appear eerily legitimate.

“To protect your business, adopt proactive strategies. The first step is to formally register your brand or company name with the relevant authority, the UK Intellectual Property Office (UKIPO).

“Registering strengthens your legal rights against scammers and third parties seeking to misuse your brand and increases brand value. Once registration at the UKIPO is secured, trade mark rights become valuable business assets that, unlike many business assets, grow in value over time.

“Having your brand registered will also give you peace of mind in relation to the unsolicited email scams threatening that someone else will register your brand or company name if you don’t.”

Getting customer contracts set up

You’ve chosen your legal structure and protected your IP. You’re ready to do business. This next stage is a significant milestone – and getting your engagement right is essential to ensure success.

Commercial Partner Dan De Saulles shares what to include in your customer contracts:

“When issuing customer contracts, you want your terms to govern. Bring them to the customer’s attention before any commitment, ideally by attaching them to quotes and order forms and stating they apply. If a customer sends purchase terms, don’t proceed in silence. Reply in writing that your terms apply and keep a clear paper trail so you can prove incorporation later.

“To ensure precision with any transaction, describe the goods or services and any statement of work with enough detail to prevent scope creep. Set pricing plainly, outlining whether figures are net or gross and whether VAT, delivery and pass-through expenses are additional.

“If the pricing formula is complex, include worked examples. State the contract length and renewal mechanism. If you need an initial commitment, make clear that termination on notice only applies after that initial term.

“Exclusions and caps should stand up to the Unfair Contract Terms Act reasonableness test. A practical position is to cap liability at the higher of the contract price or a stated sum that reflects the risk profile, with carve-outs for liabilities you cannot exclude. Resist requests to remove the cap. Check your policy responds to the liabilities you accept and to any indemnities you give.

“Train your sales and operations teams on when and how to send terms, keep templates under periodic review and remember that business-to-consumer sales are subject to different, stricter rules.”

Foundations for business success in 2026

Whether you’re building the next unicorn or establishing a family business designed to leave a lasting legacy, starting with the right legal foundations is essential. It will underpin the immediate stability of your venture and support its long‑term health and success.