When going into business, you have to choose which type of business will best meet your needs: sole proprietorship, general partnership, limited partnership or business corporation. Each type of business is different and has its advantages and disadvantages. So it is important to see your notary to decide which is best for you.
A sole proprietorship is a good choice if you want to start your own business without incorporating it. Your notary will inform you of your legal and tax obligations, such as registering the business, applying for a GST/QST number and setting up payroll deductions.
When going into business, you have to choose which type of business will meet your needs. Your notary can guide you in choosing a business that is best suited for you.
You’ve decided to join up with some colleagues and run a business together. Your notary will draw up a partnership agreement so that all associates know their role, their commitment, and the benefits to which they are entitled. The notary will also ensure that all of your legal obligations are met, such as registering your business, applying for your GST/QST number, and setting up your payroll deductions.
A limited partnership consists of one or more general partners and one or more limited partners. A general partner is a person or corporation that manages the corporation exclusively and is responsible for all its debts and obligations. Limited partners are also persons or corporations that make contributions to the corporation, but they do not have the right to manage it. It is vital to ask your notary to prepare the contract detailing the association.
For tax and security purposes, you and your partners decide to incorporate. Alongside your notary, you can establish a business corporation with share capital suited to your business type and development plans. Your notary will be very helpful in preparing the shareholder agreement that will govern the rights and obligations of each of the shareholders.
Corporate book and resolutions
The law requires all business corporations to keep a corporate book that includes the company’s bylaws and regulations, minutes of shareholders’ and directors’ meetings, the register of shareholders and directors, and the annual and special resolutions. As a company director, you are responsible for keeping the book up-to-date and including all documents and information required by law. Your notary can complete and update your corporate book in accordance with the law.
Mergers, acquisitions and sales of shares
Do you want to expand your business by buying out a competitor or another business, or perhaps by merging several companies? A notary can prepare the agreement for a sale, acquisition or merger. By letting your notary take care of the legal formalities, you will avoid making errors that could jeopardize your business plans.