Book contents
- Frontmatter
- Contents
- Prologue
- Acknowledgements
- 1 Bringing your technology to market
- 2 So do you really have something of value?
- 3 The first steps towards commercialisation of your technology
- 4 The difficult problem of valuation of intellectual property
- 5 Developing your ideas
- 6 The licensing option
- 7 Forming your own company
- 8 Financing the business start up
- 9 Make your technology a commercial success
- 10 Conclusion
- Appendices
- Index
7 - Forming your own company
Published online by Cambridge University Press: 02 November 2009
- Frontmatter
- Contents
- Prologue
- Acknowledgements
- 1 Bringing your technology to market
- 2 So do you really have something of value?
- 3 The first steps towards commercialisation of your technology
- 4 The difficult problem of valuation of intellectual property
- 5 Developing your ideas
- 6 The licensing option
- 7 Forming your own company
- 8 Financing the business start up
- 9 Make your technology a commercial success
- 10 Conclusion
- Appendices
- Index
Summary
I must create a system or be enslaved by another man's.
William Blake In Jerusalem, Chapter 1, 1815Trading places
Before trading begins, it is important to consider the legal form under which you will conduct business. There are four types of legal entity that can be set up in the UK, the most relevant of which is a limited liability company (Ltd). We will briefly discuss the other forms (a sole trader, partnership and cooperatives) for completeness.
The limited company
In this form of business your liability is limited to the amount you contribute by way of share capital. It is an independent legal entity and is separable from its owners, managers and employees. If the company fails therefore, any shareholders are not liable beyond the paid up value of their shares and creditors claims are only applicable to the assets of the company. In reality, this practice does not give enough security to lenders and you may be required to offer some guarantee (personal assets) to cover part of the loan. The limited liability company has a wider range of financing options when compared to other business forms. In particular, this can be by selling shares or creating a floating charge over its assets by selling debentures. Thus to summarise, the advantages of a limited liability company are: (a) it is a separate legal entity; (b) your personal assets will be protected (up to the value of your personal guarantees if you have given them); (c) there is a wider variety of security on offer; and (d) there are tax advantages upon which a specialist tax accountant will advise.
- Type
- Chapter
- Information
- Technology TransferMaking the Most of Your Intellectual Property, pp. 111 - 147Publisher: Cambridge University PressPrint publication year: 1995