A corporation (also referred to as a company) has a separate legal existence than its owners and is considered its own legal person. The rights and liabilities of the corporation are not the rights and liabilities of the shareholders. As a separate legal entity, a corporation has the rights, powers, and privileges (and potentially the obligations) of a natural person. It can hold property and carry on a business, and it is subject to legal and contractual obligations. A corporation offers the greatest flexibility in both the structuring of decision-making authority and of investment in the business. A corporation can […]
Business
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A partnership is created where two or more persons carry on business together with a view to a profit. There are mainly two types of partnerships – general (or ordinary) and limited. Registering a General Partnership If the general partners do not have a specific partnership agreement, the provincial partnerships acts govern their relationships. In Ontario, Partnerships Act governs the relationship between general partners. Partnership under the Partnership Act does not include a relationship between two or more companies or associations. Features of a Partnership To be a valid partnership, the relationship should fulfill the following three requirements: there should be […]
A sole proprietorship comes into existence whenever an individual starts to carry on business for his/her own account without taking the steps necessary to use some other form of organization, such as a corporation. You don’t need to register your sole proprietorship under any statute unless if you intend to use a name other than your own (full) name. If you intend to use your partial name or operate your business under any other name, you will need to register with the provincial statue (in Ontario, you will need to register with the Business Names Act) If your business earns […]
A not for profit corporation (non-profit corporation) is an entity that is created for a non-profit purpose eg. social welfare, civic improvement, recreational activities, or for any purpose except for earning a profit. Any money earned by a non-profit is used to support the administrative and financial requirements of the entity or to further the objectives of the corporation. Unlike a for-profit company, the money earned in a non-profit cannot be used to pay dividends to its incorporators or members. Registering a Non-Profit Corporation in Canada A non-profit company can be registered federally (in Canada) or provincially (in a province […]
Five Things to Consider When Buying a Business in Ontario, Canada There are many things to consider when buying a business in Canada. In this article, we highlight five important things to consider before finalizing a business sale purchase deal. 1. Are you buying assets or are you buying shares? You can either buy the shares of a business or you can buy assets. Shares: When you buy shares of a business, you automatically assume all assets and liabilities of that business. For example, if someone owes money to that business, after the sale has been completed, you have the […]
Top Ten Current Legal Issues in Business in Ontario, Canada I. Employment Employment is an important topic for any business. Whether you are a sole proprietor or an incorporated company, you need to comply with employment law and regulations within the territory. The two most important aspects of employment that business owners need to consider are: Classification of employees: Misclassifying employees as independent contractors can have financial consequences for a business owner. Financial consequences include termination package under common law, as well as penalties under the Employment Standards Act and the Canada Revenue Agency. While it may be tempting to […]
A shareholders agreement defines the relationship between the owners of a business. If your business is incorporated and has more than one shareholder, you may need a shareholders agreement. A well-drafted shareholders agreement helps guide the parties throughout their business relationship. It is especially helpful during a sale of the business or when adding/removing a shareholder. There are two main phases of finalizing shareholder agreements: Negotiation Phase and Drafting Phase. Negotiating the terms of the shareholder relationship: There are a number of issues that the parties need to consider when entering a business partnership. As shareholders, owners not only need […]
Meenakshi Tewari Jham giving advice to entrepreneurs on business law and on wills and estate planning on the program “What’s going on in our community!” – a show by Vicky C. Read about five things to consider when drafting a will. Transcript of video: Vicky: Hello everyone, its Vicky Chiappari on “what’s going on in our community”. Today we are here with Meena Jham. Thank you Meena for being here today. Meena: Thank you Vicky for having me. Vicky: Thank you, it’s a pleasure. She’s a lawyer and she does business, commercial and intellectual property and she […]
In Canada, business can be registered and operated as any of the following: Sole Proprietorship; Partnership; or Incorporation Each business form offers some advantages and disadvantages to a business owner. Not all businesses need to be incorporated as a company. There are a number of things that you would need to consider before deciding on a business form. Sole Proprietorship in Canada A sole proprietorship comes into existence whenever you start to carry on business for your own account without taking the steps necessary to use some other form of organization, such as a corporation. There are very few formalities […]
Now that you have an innovative product or service, you may be wondering what your options are to monetize it. There are a few things you can do with your product or service. You can take your innovation directly to the market; You can sell your innovation to someone else; You can license your technology or innovation rights to someone else Similarly, if you have a registered intellectual property (trademark, copyright, patent or industrial design) you may want to license that intellectual property, to create an income stream. The meaning of Licensing Licensing your rights means that you retain ownership […]