Toronto Incorporation Lawyer
Are you looking to startup and incorporate your business in Ontario? Our dedicated incorporation lawyer specializes in providing comprehensive legal services tailored to meet your needs. Insight Law Professional Corporation is dedicated to aiding entrepreneurs and start-up companies in launching their new ventures. Our business team offers advice on crafting optimal company structures, mitigating legal and financial risks, and capitalizing on available financial incentives. With our guidance, you can lay a strong foundation for your business and set it on a path towards long-term success.
We are conveniently located in midtown Toronto, minutes from the Eglinton-Yonge station. Call us 647-300-8391 or click button above to book a FREE consultation.
Toronto Incorporation Lawyer
Whether you are starting a sole proprietorship business or restructuring an existing business, we can assist you in customizing a plan that addresses your requirements while avoiding undue complexity. A small business lawyer in Toronto can guide you through the legal requirements of incorporating a business and ensure the process is legally sound.
Some of our incorporation services are:
- Articles & Certificate of Incorporation
- Digital Minute Book
- Director & Shareholder Resolutions
- Share Subscription & Share Certificates
- Registers & Ledgers
- Corporate By-Laws
- Form 1 & Form 2 Initial Returns
- Corporate Name Searches
- Business Number/Tax Accounts
If you need assistance from a Toronto Corporate Lawyer, contact us today and see how we can help you.
What is the Right Structure for my Business?
At the start of a new business, it is a crucial consideration to determine the manner which your business will be structured. Decisions made at the earlier stages of a new business might have significant importance and impact the business in the future.
When starting a business, there are a few options to consider:
For those who wish to start by themselves, operating as a sole proprietor is an option. In order for you to operate under a sole proprietorship, you’ll need to register a business name, obtain a business number and an HST number if required. It is the most cost-effective and straightforward structure you might choose. On the other hand, as a sole proprietor, you should assume personal responsibility for business debts and liabilities. You will also be paying income tax on your earnings at your personal marginal which can result in higher potential liability and tax burden.
When starting a business with others, you can opt for a general partnership. As a partner, you’ll typically share personal responsibility for any debts and liabilities of the partnership, regardless of whether you incurred them. Meaning that if you partner takes out a loan, you will also be personally liable.
Incorporation is another option that you might want to consider while starting a new business regardless of whether you’re starting a business alone or with others. A corporation is a distinct legal entity (a legal person) that possesses all the rights and privileges of a natural person such as owning property, borrow money and entering into binding contracts. A corporation has directors and shareholders as well as legal responsibilities to maintain incorporation documents filed and up to date.
In addition, incorporating your business can have certain advantages such as limited liability protection, tax benefits, credibility of your business etc. A corporation does not necessarily end with the death of its owner as in sole proprietorship. However, if you wish your business to exist, you might have to do some planning with your family or employees or even creating a will. If there is more than one shareholder in your corporation, you might want to consider having a shareholder’s agreement in place to plan for the transition.
Should Incorporate Provincially or Federally?
You have decided your business structure and you want to incorporate. In Canada, incorporations are regulated both provincially and federally. At the federal level, companies are incorporated through Corporations Canada. At the provincial level, each province has its own incorporation services. In Ontario, this is done through the Ontario Business Registry.
Deciding on whether you should incorporate provincially or federally depends on several factors such as the scope of business operations, costs associated with incorporating a business and tax advantages.
If you incorporate your business provincially, you’ll be able to conduct business only in that province whereas a federal incorporation will allow you to do so across Canada. Same thing applies to your business name protection. If you incorporate provincially, your business name will be protected on a provincial level, however a federal incorporation might protect it across the country. If you have other type of concerns about your brand, you might want to consider trademark as well.
As mentioned above, finding the type of business structure tailored to your needs requires a detailed planning process. It involves evaluating the benefits of different business structures and determing which one offers the most benefits and advantages that align with your business goals, needs and future projections.
If you are in search of guidance from a Toronto corporate lawyer, contact us and see how our firm can help you!
Corporate Minute Book
The corporate minute book serves as a comprehensive and enduring record for corporations to keep track of their activities and regulations. It is a primary means of organizing and retaining all your corporation’s paperwork. Corporate minute books are usually retained at the head office of the corporation or the office of the corporation’s lawyer.
Apart from being a legal requirement, corporations should keep a minute book since it has several advantages. Properly maintaining a minute book is crucial, as it ensures compliance with legal requirements and helps protect the corporation’s interests. First, a well-maintained corporate minute book can help prevent disputes, as it ensures that corporate decisions and ownership percentages are thoroughly documented. In addition to that, it’s important to note that your corporate records may be reviewed by the corporation’s accountants or the Canada Revenue Agency.
If you are a business owner and planning to grow your business or sell it, potential buyers or investors will typically conduct a review of your minute book as part of their due diligence.
Business Lawyer Price List
Incorporation Packages Include
Simple Share Structure
Meeting with Client
Corporate Name Searches
Articles & Certificate of Incorporation
3rd Party Fees & Disbursements
Review of franchise agreement and disclosure document$1,500 + HST + Disbursements
Franchise incubation where we take a client with an 'idea' through to the point where they are prepared to start the formal process of legal documentation.Starting at $3,000 + HST + Disbursements
Franchise documentation where we provide the incubation and preparation of the Franchise Code Compliant franchise agreement and disclosure document and any other requested documents such as operations manual and development of franchise marketing & recruitment policy. Contact us for a detailed quote for your circumstances.Starting at $10,000 + HST + Disbursements
Starting at $2,150 + HST + Disbursements
*Prices are subject to change depending on the circumstances and the complexity of each matter.
Why Choose Insight Law Professional Corporation
Business Law Frequently Asked Questions
A corporation is a legal entity which has its own legal personality that is separate from its owners and people who operate its affairs and business. Corporations are formed of shareholders, directors, and officers. Corporations have the rights and privileges that a natural person enjoys such as entering binding contracts, owning property or borrowing money.
Related Blog Post: What is the right structure for my business?
Shareholders are those who hold company shares. Voting rights in a corporation are attached to these shares. Shareholders have control over the corporation however they do not directly manage the corporation. They exercise their power of control by making major corporate decisions.
Shareholders elect directors to run the company with their best interest in mind. A director’s role is focused on the day-to-day operation of the business such as signing business contracts.
If you already started searching the answer to this question on the internet, you might have seen information on the 2-step process of incorporating and many online platforms who would incorporate your business for very low fees. However, most of these online companies or platforms usually help you with step 1 of incorporating your business. While the first step only includes Articles of Incorporation and their filing and issuance with the Ministry, step 2 is only done by lawyers. Without step 2, your business is not considered incorporated and risks dissolution. Contact us if you need more info and a Toronto Business Lawyer.
Having a contract in writing gives each party the opportunity to fully understand their rights and obligations under the contract. As a party to the contract, you can also identify any issues or ambiguities in the contract with assistance from a business lawyer. In most cases it provides a mutual understanding and interpretation of the terms of a legally binding relationship.
For an agreement or contract to be legally binding, there are certain essential elements that must be present in all contracts. These are capacity, offer, acceptance, consideration, mutual agreement, and legality.
Even though it is not mandatory, it has many advantages in terms of understanding your rights and obligations outlined in a legally binding contract. Many people use online sources to draft and generate business agreements without fully understanding the terms and conditions. Most of these contracts include generic clauses and boilerplate clauses that might risk your business in massive source of liability if you are not familiar with the legalese. A Toronto Business Lawyer can help you fully understand your rights and obligations under a contract or draft one that suits your business needs.
There are two main ways of buying or selling a business: an asset purchase or a share purchase. The key difference between the two is what is being bought and sold. In an asset purchase, the buyer purchases specific assets or parts of the business, such as inventory, equipment, customer lists, and goodwill. In a share purchase, the buyer purchases the ownership interest in the business.
Before signing loan documentation, many major financial institutions and lenders will typically demand that you seek independent legal advice. The loan will typically necessitate several General Security Agreements (GSA), personal guarantees, and Personal Property and Security Act (PPSA) registrations against your personal or business assets.
Most small business loan lenders require personal guarantee to be signed by the borrower. A personal guarantee is an undertaking by a borrower to repay a business loan using their personal assets if the business defaults. Personal guarantee is also required in certain commercial lease transactions by landlords which means this could imply that the individual's personal assets could be taken over if the business fails to generate sufficient revenue to cover the lease payment.
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