How A Corporate Attorney Can Help Your Ontario Startup Or Small Business
When you’re planning to start a business in Ontario, consulting with a corporate attorney may be one of the wisest decisions you can make from day one. Whether you’re launching a tech startup, opening a health franchise, or growing an established small business, lawyers that specialise in Canadian business law can provide critical guidance and information that will protect you and your small business and set you up for long-term success.
What does a startup lawyer do?
Starting and running a new business can be very exciting, but it can also be challenging and stressful especially if you think about the many legal requirements and issues to consider. There’s contracts, taxes, labour laws and all the other federal and local regulations related to operating your brand new business.
You may have learned the basics of business law in university and, like many small business owners, think that you have enough knowledge to handle certain legal matters on your own. However, what may look easy can be more complex than they seem and you’ll no doubt find out that all the legal things can be overwhelming.
In Canada, there are 3 types of business law that govern the operation and management of businesses–corporate law, contract law, and employment law. These three branches are fundamental for companies operating in Canada as they deal with the legal framework of how organisations are formed and operated, the terms of agreements to be legally enforceable and the legal standards that workplaces must comply with.
Toronto business lawyers provide a wide range of business law services to guide your organisation through its initial formation and structuring, the day-to-day activities and through growth and expansion ensuring compliance to federal and local laws and regulations every step of the way. Their basic role involves:
- Interpreting legal laws for businesses,
- Keeping constantly updated on changes in legislation,
- Drafting business contracts, and
- Providing essential advice on all legal aspects of running a business.
It’s essential for start-ups to consult with a business attorney in Toronto from the get-go to establish a trusting relationship and for the business to benefit from good legal advice from its inception to help mitigate risks and prevent expensive litigation or financial losses down the road.
You may decide to hire a business lawyer for small business to handle typical formation needs at the start. However, there can be advantages to working with larger corporate law firms in Toronto if you have expansion plans in the future and may require the resources that a bigger firm can provide. No matter what size the law firm, having legal representation for your small business from the start can only prove to be a great asset.
How can a business lawyer help me?
Whether you’re starting a new business from scratch or growing an established business, there are many ways you can benefit from hiring a small business attorney.
If you run construction projects in Ontario, for instance, a construction lawyer is vital to help you deal with legal issues such as the Builders Lien Act Ontario, a key piece of legislation in the industry that protects the rights of contractors, subcontractors, suppliers, and property owners.
If you’re a franchisor planning to enter new markets, a franchise attorney can provide key guidance on establishing territorial protection clauses in the franchise agreement and also assist in negotiating area development agreements (ADA) if you plan on expanding to multiple locations.
For companies in the healthcare industry, for example, medical practitioners, such as doctors, surgeons, and healthcare providers, might need a product liability lawyer to ensure that any medical products or devices used in practice comply with safety standards and regulations.
Let’s take a look at some of the ways corporate lawyers can help small businesses in Ontario:
Buying an existing business
If you’re planning to buy a business in Ontario, corporate lawyers in Toronto can help you undertake due diligence, which is essential research that needs to be done beforehand to ensure you get exactly what you expect from the target business.
A small business attorney can help examine financial documents and review contracts to identify any potential liabilities. Their legal services can also include conducting relevant investigations to uncover any key information about the target business, such as bankruptcy or litigation.
You will definitely need assistance deciding on asset sale vs. share sale when structuring the deal to consider potential liability and tax implications. A business lawyer in Toronto will help you explore all of your options before letting you sign a formal purchase agreement.
Choosing the Right Business Entity
A corporate lawyer in Toronto can best weigh in on the three common legal structures—sole proprietorship vs. corporation in Ontario and limited liability partnership in Ontario. Each structure has distinct differences and will have a direct effect on your business operations, tax obligations and potential liabilities. Without proper legal advice, your business and personal finances might not be separate. You can be held responsible for business-related debts and legal obligations and your personal assets can be seized in the event of a lawsuit.
Drafting and Reviewing Contracts
Every business needs contracts and agreements drawn up. There are partnership agreements for multiple owners, employee contracts for new hires, customer contracts for the sale and purchase of goods and services you provide, a lease agreement if you’re renting your office or non-disclosure agreements to protect sensitive information, to name just a few. Consulting with a business attorney ensures that your contracts are legally binding and protects your interest. For high-risk contracts such as businesses in healthcare, pharmaceuticals and construction, for example, a corporate lawyer can look into adding a force majeure clause which is a common provision to protect against penalties and lawsuits in cases of unpredictable and uncontrollable events that may prevent you from performing your obligations.
Protecting Intellectual Property
A business lawyer in Canada can be very beneficial for startups in fields like technology or healthcare where intellectual property are valuable assets. A good technology lawyer can deal with questions on what is assignment sale and how it can safeguard exclusive rights to your product, service, brand name, or specialised technology. A corporate lawyer with expertise in tech law will help ensure that legal protections such as patents, trademarks, copyrights and non-disclosure agreements (NDAs) are in place to protect your intellectual property.
Tax and Regulatory Compliance
In Canada, every industry has its own business rules and regulations. Your business lawyer can help you navigate federal, state, and local regulations applicable to your company. Expert legal advice is essential to make sure your business complies with CRA tax obligations, business registration permits and licences and other specific regulations depending on where your business operates, which can include employment law compliance, health and safety guidelines, consumer protection laws, privacy and data protection laws and environmental regulations, among many other complex regulations. If you’re opening a medical practice, for instance, an administrative law attorney can help guide you through the complex licensing processes of specific regulatory bodies in Ontario to ensure that you meet all legal requirements.
Looking for a business lawyer near me
Finding a corporate attorney in Toronto with relevant experience specific to your industry is vitally important to help you overcome the challenges of starting a business. Corporate lawyers have specialised knowledge in contracts, employment law, intellectual property and compliance that will better protect your business from complex legal issues in the long run.
Ready to set up your business for success? Bridging Legal Solutions is dedicated to providing expert legal guidance to help startups and small businesses navigate the complexities of Ontario’s business laws and regulations. Contact us today to get started!
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