CORPORATE LAWYER | BUSINESS LAWYERS
Toronto Business Lawyers
An experienced business and corporate lawyer is capable of helping you plan for most probabilities, particularly while in the early-stages of a company’s creation. Corporate and business lawyers are knowledgeable in steering clear of complications as well as ensuring your business is safeguarded against potential civil suits or regulatory action. Fees to keep you in compliance with relevant laws and regulations are typically quite reasonable whenever competent professionals are brought on board in the beginning. The cost to you to resolve non-compliance issues or civil suits in the future however tends to be very costly.
As you plan to begin your business, there will be a number of challenges that you may face which are not foreseeable, so you deal with them as they arise. While others, however, you can foresee and plan for ahead of time. An experienced corporate lawyer can advise you and help you structure your business so that you do not face such challenges.
Some business owners tend to make decisions without legal advice or proper planning and seek the advice of civil suit lawyers when they are being sued or find themselves in desperate need to protect their legal rights. An improperly formed corporation or a corporation that is not run in accordance with federal and provincial laws can result in costly filing fees to regain its legal standing. You could also find yourself personally liable for incurred debts of the corporation should it become automatically dissolved.
Why Incorporate a Business?
Corporations provide limited liability for its shareholders. Shareholders are not personally liable for corporate debts, as long as the corporation is properly structured and operated. Limiting investment risk to business owners is one of the major factors in favour of incorporating a business.
Separate Legal Entity
A corporation is a distinct legal entity that has the legal rights to own assets, go into debt, earn income, sue or be sued, and enjoys a perpetual existence. It has the same legal rights as any person under Canadian law.
Securing Financing - Raising Capital
Corporations enjoy greater flexibility in finding and securing financing. Since incorporated businesses have a perception of business legitimacy and limit financial risk, financial institutions and investors are more willing to invest or provide corporate loans.
Lower Corporate Tax Rates
Corporations are taxed separately from their directors and shareholders, and the corporate tax rate is usually lower than individual tax rates. Possible tax planning considerations that could potentially lower tax rates might include but are not limited to small business tax deductions, capital gains tax exemptions and deferring personal income.
Non-disclosure and Non-compete Agreements
Many businesses consider proprietary information, their list of customers or clients and the skill set of their employees, examples of their most significant assets. However, they neglect to safeguard those assets by means of Non-disclosure and Non-compete agreements with their personnel.
We not only know that business owners would be wise to verify restrictions on their new employees current or past employment agreements but they also must understand any existing provisions or restrictions pertaining to employment law issues. Additionally it is worthwhile to have employees sign written employment agreements that incorporate confidentiality provisions, non-compete provisions as well as any appropriate restrictive covenants.
Business owners place their efforts into establishing a new business and overlook what could happen in the event one of the principals actually leaves the business. Whenever a partner or major shareholder makes a decision that they want out, it could conceivably endanger the capability of the business enterprise to carry on functioning.
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