Incorporating (Part 5): Your first meeting with a lawyer
Once you have gathered the necessary information, and if you have decided to incorporate, the next step is to meet with a business lawyer who will start-up and help maintain your corporation with the best interests of your business in mind. To streamline and tailor your experience with your lawyer, it is helpful to prepare and compile the information that your lawyer will need to know. Before your first meeting, consider your answers to the following questions: Will your corporation run a not-for-profit or for-profit business? Not-for-profit corporations are incorporated under and governed by their own legislation. They are subject to unique rules surrounding business activities and governance practices. Inform your lawyer if you will be operating a not-for-profit business so
Incorporating (Part 4): How and when?
How do I incorporate? If you would like to incorporate your business, enlist the professionals who will guide you through starting up, maintaining, and operating your corporation. A corporate accountant can work with you to uncover potential tax benefits, develop a suitable share structure, and, once your business is incorporated, he/she can produce annual financial statements, and file the corporation’s annual income tax return. A business lawyer can prepare and file your articles of incorporation (in accordance with your accountant’s instructions, where applicable) and set-up your corporate minute book. Once your business is incorporated, he/she can keep your corporate records up to date, ensure that your corporation is compliant with applicable laws and regulations, assist you with preparing and negotiating contracts
Incorporating (Part 3): Extra considerations
To plan for the creation and future maintenance and operation of your corporation, there are some important issues to consider, such as: (a) the impacts of pre-existing contracts on your new corporation, (b) using and registering trade names, (c) transferring your personal assets to your corporation, (d) having a secondary will, (e) entering into a shareholder agreement, and (f) how to change a corporation. Contracts with Third Parties Before you incorporate, have your business lawyer review your existing contracts, such as commercial leases and supply agreements, for provisions that require you to notify the other party of changes to your business (such as an incorporation), or to obtain consent before assigning the contract to your corporation. The terms of your existing contracts
Incorporating (Part 2): The obligations
In Part 1 of this blog series, we discussed what it means to incorporate and the potential benefits of incorporating a business. Incorporating also comes with one-time and recurring legal obligations, some of which require money, time, and attention, such as (a) filing annual income tax returns; (b) filing annual information returns; (c) registering a federal corporation to operate in a province or territory; (d) registering a provincial corporation to expand its operations into another province; (e) maintaining corporate records; (f) holding annual meetings or signing annual resolutions; and (g) obtaining HST numbers, permits, and licences, if applicable. Income Tax Returns Every corporation must file an annual income tax return with the Canada Revenue Agency no later than six months after
Incorporating (Part 1): The benefits
The first thing a business owner who is considering incorporation should know is what a corporation is and why someone might choose to operate a business through this type of entity. What is a corporation? A corporation is a business that has been federally or provincially incorporated. When a business owner incorporates his/her business, he/she creates a new legal entity that is separate from him/her. As a result, the corporation has its own rights and responsibilities, just like a person – it can buy and sell property, borrow money, enter into contracts, sue and be sued, and must file taxes all in its own name. A corporation is owned and controlled by its shareholders, its business activities are managed by its board
Incorporating: What you need to know (a five-part blog series)
Are you currently operating a business as a sole proprietor or are you thinking about starting a business? Follow our upcoming five-part blog series to get the scoop on incorporating. Learn about the benefits and obligations associated with incorporating, things to consider, how and when to incorporate, and how to prepare for your first meeting with your business lawyer. If you are considering incorporating, let us eliminate unnecessary twists and turns and equip you with the information you need to make the best possible decisions for your business. For any incorporation or business-related questions, please reach out to Jade Renaud at 343-888-8913 or jade@ottawa.law. More information about our services can be found on our website at Ottawa.Law.
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Do you own a joint property with your spouse? Are you separated or in the midst of separation?
If so, do you still own property together as joint tenants? If you do not know, you likely do. Even if you change your Will, your joint property still goes to your spouse by right of survivorship (an automatic rule). People focus on the separation agreement or redoing their Will (which are both important) but forget about title to the property (or properties) while the separation is being negotiated. Even before you start negotiating, you should be transferring your property from you as a joint tenant to you as a tenant-in-common. Either spouse can do this without the other spouse’s consent as you are not transferring their share, only your own. You are simply giving a clear indication that you