When you start or register a business with the Ontario Ministry of Government and Consumer Services, you can operate under an accepted name. To this end, the Trade Names Act sets out the rules and requirements for registration. However, as in Quebec, Ontario entrepreneurs who do not comply with the law can face fines if they do not register or register false or misleading information about their adoption name. Unfortunately, without these timelines, a company can only issue and sell “common” shares, which is not necessarily related to the reality or goals of your business. Failure to file this schedule is not without consequences, as incorporation laws provide that each new shareholder of your corporation has the right to vote on the purchase of “common shares”. Therefore, it is fundamental to have such a document, otherwise you risk losing control of your business. Once Stage 2 is complete, lawyers return to the ministry and submit an Initial Declaration Form 1. This Form 1 notifies the Department that the organization has been completed in Step 2. This Form 1 must be filed within 60 days of the formation of the province and is required under the Corporations Information Act. When you start a business, set it up to function as a separate entity with legal rights recognized by the state. The most important benefit of starting your business, as opposed to a sole proprietorship or partnership, is that it protects you from liability for its debts and other financial obligations. In other words, if your company is unable to pay its bills, its creditors cannot sue you for payment. Many see online ads promising a startup for as little as $100 without the need for a lawyer.

Many wonder, why should I hire a lawyer when I could do it myself for a tenth of the cost? The quick answer is that these sites do not complete the startup process: they only complete step 1 of the two-step process of starting a business. Before you incorporate, you need to make sure that your company name is royalty-free. In other words, you need to make sure that the name you are proposing is not already used by another company as a trade name or trademark. Most entrepreneurs who set up without the help of a lawyer do not carry out these checks beforehand. As a result, they are denied incorporation because the name of their proposed corporation is already in use. To integrate a person, the person must create a separate business unit for their sole proprietorship. Read 3 min Another potential risk factor that requires the involvement of a lawyer is the relationship between the founders of the company. “If people who are not family — or who don`t have a relationship of absolute trust, like essentially a household does — get together to fit in, then a lawyer should be used for planning documents,” says New York attorney Andrew Rozo.

“Doing business with friends and strangers often leads to problems and company dissolutions, which can be extremely chaotic and stressful without company documents keeping an eye on the breakdown of the relationship,” says Rozo. In this situation, a lawyer can plan contingencies. Unfortunately, a big part of the work we do at Kalfa Law is to correct and reconstitute businesses that were founded online without a lawyer. This usually happens a few years after its inception, when the business begins to generate and generate revenue. The owners are then interested in confirming that the business has been properly structured, or sometimes they are interested in selling all or part of the business. We look at what has been done and, in most cases, only laws have been published, which means that the company is deficient. Annual resolutions are required each year during which the directors and officers of the Corporation approve the Corporation`s financial statements, a legal requirement. Another reason why it is advantageous to hire a lawyer is that the lawyer and accountant ensure that these deposits and resolutions are completed annually. Start-ups that have been registered online are also generally deficient in their annual submissions and resolutions. Lawyers charge between $1,000 and $2,000, depending on the law firm and complexity. Online integration can cost as little as $100 or $199; However, you have not created a valid company. You have two options: hire a lawyer or do it yourself.

The above contains only information of a general nature. This does not constitute legal advice. All transactions or circumstances vary, and specific legal advice is required to meet your particular needs. If you have a legal question, you should contact a lawyer. If you make the decision to start a business, you can do it yourself without hiring a lawyer. But it`s not always the ideal decision. This could be a good idea if you don`t have the means to hire a professional. But when you hire a lawyer to help you start a business, it`s not just about starting a business. Using a lawyer also supports you in other legal aspects of starting a business, such as.B. the preparation of the general conditions and privacy policy in case of creation of an e-commerce or application company; Preparation of employment contracts, service contracts or distribution contracts for your company; Branding your business with brands; Obtain the appropriate licenses and permits required to operate your specific business; and finally, the use of tax planning and income splitting tools available to businesses.

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