Ottawa Business Lawyers
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Businesses are expected to follow the myriad laws set by the authorities. Therefore, whether small or big, businesses need an Lawyer to ensure they function properly and are compliant with the set laws. Issues such as property purchases and preparing taxes require legal help. Disputes and litigation require law expertise to prevent serious consequences, as well. This is where business Lawyers come in handy. They offer legal help to businesses. Below are other important benefits of hiring a business Lawyer Ottawa organizations can trust.
A Lawyer Will Provide Your Business with Advice
Business Lawyers help business owners to understand different legal issues, such as lawsuits and legal violations, that might impact their operations. They provide the required advice and legal guidance to help you come out of the legal situations or avoid breaking the law in the first place.
A Lawyer Can Facilitate Dispute Resolution
A business may fall into conflict with other establishments. In such instances, a business Lawyer will come up with legal options that are helpful to both parties. Note that litigation takes time and costs a lot of money. This is why it is vital to opt for mediation and arbitration. According to various reports, only 4% of cases of personal injuries are resolved through the court, while 96% are settled through negotiation. These private negotiations and conflict resolutions are preferable for a number of reasons -- and your Lawyer can help you achieve a favorable outcome.
A Lawyer Will Help Businesses Stay On Top of Legal Changes
With laws and regulations changing every day, it is quite hard to fully understand what is required of you as a business owner. This is where the business Lawyers come in handy. They help you to avoid violating the law. Business Lawyers also help to negotiate legally binding agreements such as partnerships agreements and leases. Essentially, a business Lawyer ensures that everything you do is in line with the law.
A Lawyer Can Navigate the Legal System
At some point, you may find yourself on the wrong side of the law. A business Lawyer will help you deal with legal problems as they arise. If you're facing a lawsuit, a Lawyer can ensure your rights are protected. An adept Lawyer can even tilt the dispute to your advantage. A business owner should never try to handle any legal disputes on their own, as this can end very poorly.
A Lawyer Can Connect You With a Specialist
If you are in need of specialized assistance, business Lawyers can refer you to the right professionals. Some cases, such as complicated tax matters, may require extra help. Lawyers are well-connected can direct you to a specialist who can provide guidance and assistance for all your business needs.
A Lawyer Can Help You Avoid Mistakes
Running a business is associated with numerous legal pitfalls. You are susceptible to making legal mistakes, regardless of whether you’re a rookie or an experienced business person. A good business Lawyer is well versed with business knowledge and pitfalls that you may come across. A business Lawyer helps you avoid major problems, some of which you may not even be aware of. Employment lawsuits can put your business profitability at risk. It is much better to prevent lawsuits before they occur instead of dealing with them later.
A Lawyer Can Ensure Your Contracts Are Sound
One of the most important things for a business is to ensure they have solid contracts. Otherwise, other entities may take advantage of incomplete or vague agreements. Solving cases that come as a result of this sloppiness can be very costly. Business Lawyers help to draft airtight agreements, hence avoid future disagreements and potential losses.
A Lawyer Can Make It Easier To Get Paid
Dealing with some partners, clients, and business associates can be quite stressful. Some people are reluctant to pay for services or supplies. If someone owes you money and they do not show commitment to pay you, consider using your business Lawyer. Ask the Lawyer to send a request on your behalf. Business Lawyers will not only motivate debtors to pay you, but they also know the steps to take in case they totally refuse to pay.
Businesses both small and big needs to have a business Lawyer. Corporate Lawyers do not only deal with lawsuits but also can help you with drafting contracts and operating the business in line with the law. They may also allow you to avoid costly legal action. For more information, please contact our firm today.
Frequently Asked Questions
Should I incorporate my medical practice as a professional corporation?
I am a practicing family physician with two young children. My accountant mentioned the idea of incorporating my practice into a professional corporation. How does this work?
As a physician, you are generally permitted to create a physician corporation. The Ontario Business Corporations Act (OBCA) and the Regulated Health Professions Act govern physician corporations. Once incorporated, a Certificate of Authorization from the College of Physicians and Surgeons of Ontario (CPSO) is required for your professional corporation to practice medicine in Ontario.
There may be significant benefits to incorporation arising from income splitting through the payment of dividends to adult shareholders and the deferral of tax through retention of excess cash and investing in the corporation.
A professional corporation carries on the practice of medicine with you as both a shareholder and employee of your corporation. It is important to note that under the provisions of the OBCA, a professional corporation does not shield the shareholders from professional liability as acts of a professional corporation are deemed to be acts of the shareholders. Non-voting shareholders who are not members of the CPSO are exempted from any professional liability.
All voting shares of the corporation must be held by a member of the CPSO. Non-voting shares can be held by a parent, spouse or child (and minor children must have their shares held in trust). Professional corporations are only permitted to carry on the practice of the profession or activities that are related to or ancillary to the profession. Furthermore, a professional corporation is permitted to invest its surplus funds in passive investments.
A Lawyer with experience in incorporating professionals can help you set up your professional corporation such that your objectives may be realized.
Acquisition of a Business - Do such contracts affect the decision to acquire shares or assets?
I am considering the acquisition of a business. Long term contracts between the business and third parties are important to the business. Do such contracts affect the decision to acquire shares or assets of the business?
There are a number of factors to be taken into account when purchasing an existing business including tax, liability, due diligence and employee matters. Your question relates to the contracts between the business and third parties. These contracts may include rights obtained by the business necessary to carry on the business, such as licenses or franchises, or the benefit of sale or service agreements for the supply of products or services that generate revenue for the business.
A fundamental difference between an asset purchase and a share purchase is that in an asset sale the contracts must be assigned (along with the transfer of assets) while in a share sale the contracts remain intact (since only the shares of the business itself are transferred).A comprehensive review of all important contracts is advisable as early as possible during the due diligence process to determine rights and obligations. If third party consents are required, consideration must be given as to the risk that such consents may not be available in a timely manner, or at all, and whether the transaction may be better structured to avoid the necessity for assignment. In some less common circumstances there is an outright bar to assignment and consents cannot be obtained (this is the case in some government procurements). The acquisition of the business in such circumstances may only be achieved through a share sale to avoid termination of such contract(s). It should also be noted that some contracts contain provisions that deem a change of control from a sale of shares to be equivalent to assignment, and triggering the necessity for third party consent.
How do partnerships work and how are they setup?
My friend and I have an idea for a business and we are considering forming a partnership. How does a partnership work and how should one be setup?
Whether or not a partnership exists is a fundamentally a legal question. Ontario’s Partnerships Act says that a relationship between “persons carrying on a business in common with a view to profit” is a partnership within the meaning of the Act. This is important because it means that whether or not you declare yourself to be a partnership, legally speaking, you might be a partnership anyways, whether you intended to or not.
A partnership can exist between you and your friend personally, or even as between two corporations controlled by each of you. Unlike a corporation, however, a partnership has no separate legal existence from the partners themselves and each partner has the power to bind the partnership and each partner is jointly liable for any obligations incurred on behalf of the firm. This is why, when deciding to form a partnership, a partnership agreement can be very practical.
A partnership agreement sets out the rights and obligations for partners in the partnership and provides for what should happen in circumstances of partnership incapacity, retirement or death. Without one, the Partnerships Act will provide for what happens to the partnership in these circumstances, often with unintended results. A partnership agreement can also provide mechanisms for the distribution of partnership income and a process for bringing additional persons into the partnership. Creating a partnership agreement that meets your goals with the help of a commercial Lawyer ensures that your partnership will continue in a manner of your design.
