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Shameela Chinoy can provide an overview of the legal and financial requirements needed to launch your business successfully and assist you with your business plan as a well drafted business plan improves your chances in getting a loan for your business.

Selection of a Business Structure

Shameela Chinoy can explain the differences between the 3 forms of business structures: sole proprietorship, partnership and corporation, and review which type is most suitable to your business based on factors such as the type of business, finance requirements, tax issues, your risk tolerance and concerns regarding liability. By starting your business using the wrong structure, you could possibly expose yourself to liability, forgo possible tax deductions and be filing too much paperwork. An accountant should also be consulted regarding tax implications of the business structure chosen.

Buying an Existing Business

If you are contemplating buying an existing business, you may have to decide whether to buy the assets of the business, or the shares of an existing incorporated company. You must also check with your accountant the tax implications of purchasing assets versus shares of an existing corporation.

The buy and sell agreement signed by both parties outlines the rights and obligations of each party, and any restrictive terms of the deal for example, a non-competition clause, which must be reasonable to be enforced.

Buying an existing business can be risky and it is important to ask the right questions early on and structure the deal properly. If you acquire an existing corporation by purchasing its shares, you will be assuming the liabilities of that corporation. Before completing such a transaction, you should retain the services of a qualified business lawyer who should conduct various searches for example, for outstanding liens against the company assets in order to protect your investment.

If you are buying an existing business, there are a number of other legal issues you must ensure the business complies with such as licensing, registrations, consents, notices, environmental concerns, and employee issues. By reviewing any contracts that will continue after your buy-in, your lawyer can protect you from any prior breach of contract or law.

Shameela Chinoy can discuss ideal strategies to ensure you are protected during the deal, prepare and negotiate agreements of purchase and sale, financing agreements and corporate resolutions to ensure that the business purchase takes place efficiently avoiding lawsuits, deals not materialising or time wasted arguing over the meaning of vaguely worded clauses.

Develop standard form contracts

Improperly drafted contracts could result in unpaid accounts and unscrupulous parties taking advantage of you.

Shameela Chinoy can help you to develop standard form contracts, including employment agreements, invoices and sales agreements to maximize your profits and minimize your potential liability.

Prepare and Review other contracts and agreements

It is recommended that you contact a lawyer before you sign any contract or agreement which is a legally binding document. Such contracts include a partnership or shareholder agreement, an employment contract, mortgage, purchase agreement, a franchise agreement or a commercial lease.

Shameela Chinoy can help you prepare contracts and agreements and review them with you.

Review Commercial Leases
Often businesses start out from leased premises. A signed lease agreement is a binding legal document and usually represents a long-term commitment. Lease payments will be one of your largest head of your business expenses. Depending on the space you are renting, the lease documentation can range from a one-page agreement to a lengthy complex document. While your realtor can assist you in understanding the costs it is advisable to have a lawyer with a knowledgeable in commercial leasing issues explain the terms of the lease and its legal implications before you sign the lease.

Shameela Chinoy can help you prepare commercial lease agreements if you are a landlord and review them and explain your obligations under the agreement if you are the tenant.

Develop proper record keeping practices

Record keeping is one of the downsides of running your own business. Poor record keeping can lead to fines or penalties if you are audited.

Shameela Chinoy can discuss ways for your business to develop proper record keeping practices so you project a professional image, avoid paying late filing fees and free up your time to concentrate on your business.

Dissolve or wind-up the corporation

In the unlikely circumstance that your business fails, you need to protect yourself or you could also lose your house and personal savings.

Shameela Chinoy can discuss ways to structure your business affairs so that your personal liability is minimized and you are adequately protected.

Shameela Chinoy is qualified to practice law in the Province of Ontario.

To set up an appointment to discuss your business legal issues with Shameela Chinoy, click here.

163 Willowdale Avenue,

North York,

Ontario, M2N 4Y7

Tel: 416-227-2082

Fax: 416-227-2083 schinoy@chinoylaw.com