Corporate Law
Starting a new business can be intimidating. Let Lama Law help you start your new business with confidence. We can assist you in incorporating which includes helping you find the right name, ordering your corporate minute book, satisfying the necessary corporate filings and completing your annual corporate maintenance. Our office provides diligent and professional services when buying or selling a business.
List of corporate services include:
- Incorporation
- Purchase and Sale of a Small Business
- Shareholder Agreements
- Promissory Notes
- Corporate Reorganization
- Annual Corporate Maintenance
Why you should incorporate your business?
- A corporation is considered separate legal entity which means your corporation can continue to exist even after changes in ownership, officers and employees
- As a general rule, incorporation will allow you to limit your liability when entering into contracts, when buying property and when borrowing money
- You can take advantage of the small business deduction which lowers your tax rate in Ontario on the first $500,000 you make each year if you meet the eligibility requirements
- You can take advantage of the lifetime capital gains exemption if you meet the eligibility requirements
- Allows you to raise capital through issuance of shares to investors
- Allows for multiple owners and growth of your business
Your incorporation with Lama Law includes:
- Corporate name search, if applicable
- Registration of articles of incorporation and obtaining certificate of incorporation
- Setting up your hard copy minute book or electronic minute book
- Preparing your corporate by-laws and resolutions
- Issuing shares and share certificates
- Preparing registers and ledgers
- Filing form 1 and form 2 initial returns
- Virtual or in person signing of all corporate documents
Are you thinking of buying or selling a business? Here’s what your lawyer at Lama Law will do for you.
Step 1
Meet with you either virtually or in person to discuss how you would like to structure your potential purchase or sale of the business. This includes considering whether an Asset Purchase or Share Purchase is best for you.
What is an Asset Purchase
When a buyer acquires specific assets like equipment, inventory, customer lists and intellectual property. The seller retains ownership of the corporation. This is preferred by buyers because it limits the buyers exposure to the seller’s potential liabilities.
What is a Share Purchase?
When the buyer acquires the seller’s share in the corporation and is thus taking over the entire corporation and its assets and liabilities. This is preferred by sellers due to its simplicity in transfer ownership and tax implications.
Step 2
We will prepare and negotiate your Agreement of Purchase and Sale of Business and closing documents.
Step 3
Once your Agreement is firm, our office will complete all the required due diligence to include legal compliance, contract review, employment review and operational review, and asset verification.
Step 4
We complete your transaction on closing date including exchange of closing documents and transfer of funds.
