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Business LPAs Explained: Why Keeping Business and Personal Affairs Separate Matters

22nd July 2026

Running a successful business often means planning for growth, managing risk and preparing for the future. Yet one important area is frequently overlooked: what happens if you become unable to make decisions because of illness, injury or loss of mental capacity?

Many business owners have heard of Lasting Powers of Attorney (LPAs), but fewer realise that their personal arrangements may not provide the protection their business needs. A separate Business LPA can play an important role in safeguarding the continuity of your company and ensuring key decisions can still be made when they matter most.

A Business LPA can provide valuable protection and peace of mind, helping ensure important decisions can still be made when they matter most. In this guide, Susan Hall, Director and Head of our Wills and Probate team at Myers & Co Solicitors, explains the key considerations and legal essentials to help you protect your business with confidence.

What is a Business LPA?

A Business LPA is not a separate legal document in its own right. It is a Property and Financial Affairs Lasting Power of Attorney that is specifically drafted to deal with your business interests.

Many business owners choose to have:

• A personal LPA covering their private finances and assets.
• A separate Business LPA dealing solely with commercial matters.

This allows different people to be appointed for different responsibilities, ensuring business decisions are handled by someone with the appropriate knowledge and experience while keeping personal affairs separate.

Why might a personal LPA not be suitable for business matters?

The person you trust to manage your household finances may not be the person best placed to oversee your business operations.

Business decisions can involve:

• Accessing business bank accounts.
• Managing payroll and supplier payments.
• Signing contracts and commercial agreements.
• Dealing with accountants, lenders and advisers.
• Making strategic decisions affecting the future of the business.

Equally, a business partner, fellow director or trusted adviser may have the commercial expertise required for these decisions but may not be the right person to handle your personal finances.

A separate Business LPA allows you to appoint attorneys with the specific skills needed for each area of your life.

Why is a Lasting Power of Attorney important if a business owner loses capacity?

Without the appropriate legal authority, important decisions may be delayed or impossible to make. This can create significant challenges, particularly where the business relies heavily on one individual.

Practical issues can arise quickly, including:

• Delays accessing business bank accounts.
• Difficulties authorising payroll.
• Problems signing contracts or approving transactions.
• Disruption to relationships with customers, suppliers and lenders.
• Uncertainty amongst employees and stakeholders.

If no suitable LPA exists, an application to the Court of Protection may be required before someone can act on your behalf. This can be a lengthy and costly process at a time when the business may already be facing uncertainty.

Who should consider a Business LPA?

A Business LPA may be beneficial for anyone who plays a key role in the ownership, management or control of a business, including:

• Sole traders.
• Company directors.
• Shareholders with management responsibilities.
• Partners in traditional partnerships.
• Members of Limited Liability Partnerships (LLPs).
• Owners of family-run businesses.

The need is often particularly important where day-to-day decision-making rests with a small number of individuals or where the business depends heavily on the involvement of one person.

Who is the best person to appoint as an attorney when a business owner loses capacity?

Choosing the right attorney is one of the most important decisions when creating a Business LPA.

The ideal person should understand how the business operates, be capable of making commercial decisions and be someone you trust completely.

Depending on your circumstances, this could be:

• A fellow director.
• A business partner.
• A senior employee.
• A professional adviser.
• Another trusted individual with relevant experience.

You may also wish to appoint replacement attorneys and include specific guidance on the powers they can exercise.

The right structure will depend on the size of your business, the nature of your role and the complexity of your commercial arrangements.

Can a Business LPA work alongside existing company documents?

Yes, but it is important that all arrangements work together.

Before preparing a Business LPA, consideration should be given to existing documents such as:

• Articles of Association.
• Shareholders’ agreements.
• Partnership agreements.
• LLP agreements.
• Banking mandates and financial authorities.

A carefully drafted Business LPA should complement these arrangements rather than create conflicts or uncertainty.

This is one reason why tailored legal advice is so important. Every business has different requirements and a document that works well for one organisation may be unsuitable for another.

When can a Business LPA be used?

A Property and Financial Affairs LPA can be drafted with flexibility in mind.

Depending on your wishes, your attorney may be able to act:

• As soon as the LPA has been registered.
• Only if you lose mental capacity.

Some business owners value the additional flexibility that allows an attorney to assist with certain matters if they are temporarily unavailable due to illness, travel or other circumstances. Others prefer their attorney’s powers to take effect only if capacity is lost.

The most appropriate option will depend on your business and personal preferences.

How Can Myers & Co Solicitors Assist Business Owners with a Business LPA?

A Business LPA is about protecting the future of your business and reducing uncertainty if the unexpected happens. Putting the right arrangements in place now can help ensure your company continues to operate smoothly while providing clarity for colleagues, family members and professional advisers.

At Myers & Co Solicitors, we provide practical, straightforward advice on Lasting Powers of Attorney, business succession planning and wealth protection. We can review your existing arrangements, advise whether a separate Business LPA is appropriate and prepare documentation tailored to your business structure and long-term objectives.

If you would like to discuss protecting your business please  Give us a call, or make an enquiry to find out how we can help.