In this age of opportunities, many people want to start a business. It can be an online business or service or a brick-and-mortar store.
But while opportunities are aplenty, there are also quite a lot of obstacles to hurdle. You need to have the mandatory permits or licenses, qualifications, business requirements, and financing.
If you have never started a business in your life, it can be overwhelming. Where do you start?
Putting up a new business in Ontario can be a lot easier with lawyers for startups. Business lawyers for start-ups help entrepreneurs navigate the rigorous steps in setting up a new business. They have extensive expertise in handling the many challenges of starting a business venture.
Do you need help with a business startup?
Compare reliable and experiences startup lawyers in Ontario by filling out our short online form, free of charge.
Benefits of Hiring a Startup Lawyer in Ontario
Establishing a startup is exciting but you should know early on that you will be facing many challenges.
Many new entrepreneurs neglect the importance of having the right business structure to ensure that the business has all the proper documents. Failing to take one critical step can result in expensive consequences.
Startup lawyers can work with you from the very start, before you even launch your new business!
Consider the benefits of hiring a startup lawyer
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Lawyers assist with obtaining the proper licenses and permits;
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Give you advice on the best legal structure for your business;
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Draft and negotiate shareholder and employment agreements;
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Assist with the incorporation of your business;
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Draft and file the Articles of Incorporation;
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Prepare governing documents such as corporate by-laws;
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Offer legal advice and support;
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Ensure compliance with the mandated legal requirements in your city or municipality;
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Increase your credibility with potential investors;
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Help with intellectual property rights to protect the value of your innovations.
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Review e-commerce agreements;
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Draft joint venture agreements;
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Draft employment contracts that comply with the Employment Standards Act.
Launching any type of new business is a HUGE step.
Consult with legal experts from the very start to maximize your chances of success.
Toronto as the Best City to establish a Startup
Did you know that Toronto ranked as the 17th best city for a start-up globally? This means that as an entrepreneur planning a startup in Toronto, you have great chances of success with your business.
Toronto is a major tech hub and also boasts a large talent pool. No wonder it has the most number of startups in Canada.
If you are planning to launch a new business in Toronto or elsewhere in Ontario, your first important step is to find the best startup lawyer to assist you.
JuriGo has a vast network of startup lawyers in Toronto, Ottawa, Greater Sudbury, Mississauga, Hamilton, etc.
Fill out the free online form on this page to compare startup lawyers near you!
Types of Business Structures to Consider
When starting a business, it is important to choose the right business structure . It will affect everything you do- your taxes, personal liability, management style, etc.
Each business structure has its pros and cons. Understanding how they work will help you to choose the right one for your business needs.
Sole Proprietorship
This is the simplest and most popular business structure for startups. It is owned and managed by one individual (proprietor) who is personally responsible for all aspects of the business, including its liabilities.
A sole proprietorship is easy to setup and maintain, and the income is reported on your personal income tax return.
Partnership
In a partnership, 2 or more individuals own and manage the business. They can be limited or general partnerships.
In a limited partnership, at least one partner will be responsible for the liabilities and debts of the business and one or more have limited liability. In a general partnership, each partner will be responsible.
Corporation
For a corporation, the business legal entity is separate from its shareholders or owners.
This means that their personal assets are not at risk from the liabilities and debts of the business.
It can be a private or public company wherein shares of stocks are issued to raise capital.
This type of structure is complex to setup although it offers numerous benefits. A startup lawyer is an expert at incorporation and can assist you with the process.
Cooperative
This business structure is owned and operated by members of the cooperative.
It is common among credit unions, farmers, or housing cooperatives. The members will have limited liability and the profits are distributed among the members depending on their participation.
Incorporation lawyers or startup lawyers can advise you on the best structure for your business based on your objectives. They will help you plan, draft, and file your legal documents.
Contact the best startup lawyers in your area using our short online form, free of charge!
Launching an Online Business Startup in Ontario
The trend for digital or online businesses keeps growing at an unprecedented pace. With consumer habits moving to digital options because of its advantages, more and more entrepreneurs are coming out with new products and services online.
An e-commerce business requires lower startup costs to get the business off the ground compared to a physical store. Tools such as drop shipping and other third-party supplier options have made it so much easier for business owners to manage their inventory and delivery processes.
Before you launch your online business
We know you must be eager to launch your business but it is important to do it right. Below are a few things to do before you start your internet business.
- Choose a business name and register a domain for your website. Ensure that your chosen business name has no conflict with existing businesses.
- Register your online business – you can choose to register it as a small business or to incorporate it. Once you are a registered business, you can now offer your products or services anywhere.
Whether you choose a small business or to incorporate, it is critical to have a legal expert by your side at this exciting time.
As with any business, laws and regulations must be followed to avoid legal conflicts in the future.
Consult a startup lawyer from JuriGo to launch your online business the right way.
Did you know?
Small businesses such as startups with less than $10 million gross income or less can apply for loans under the Canadian Small Business Financing Program (CSBFP).
This is a cross between a traditional business loan and a government subsidy or support loan.
It can be repaid over a specified term with interest but it is backed by the Federal government . As such, it is available for borrowers that traditional banks or lenders may not approve.
Find out if you qualify for a CSBFP loan for small businesses .
Steps to Forming and Organizing a Startup with a Lawyer
Whether you are a tech start-up or a small business , startup lawyers can assist you through the steps required for forming and organizing your startup.
Startup lawyers will provide tailored solutions for starting your business .
Incorporate and Draft Corporate Records
Federally or provincially, a startup lawyer can file the Articles of Incorporation. He can prepare records to elect directors or appoint officers or issue shares of stocks.
Structure the Startup and Vesting
If needed, a startup lawyer can help plan future equity investment as an incentive to founders and employees with stock options or share vesting.
Draft Shareholders Agreement
A shareholders agreement outlines the governance of the business as well as rights and restrictions.
Assignment of Intellectual Property to the Corporation
Software and other intellectual property (IP) from the founders or third parties must be transferred to the company after its incorporation.
Once you have a solid business plan, you can turn it into a reality with the help of startup lawyers in Ontario.
A small business can operate as a sole proprietorship and as mentioned early, it is the simplest business structure to setup. If you intend for your business to grow and raise additional capital, incorporating the company offers many benefits.
Speak to a startup lawyer to get valuable tips and advice about forming and launching your startup.
Additional steps for Startups to Consider
Aside from the basic steps for a startup, entrepreneurs must consider these additional steps:
Recruiting and Hiring Employees/Contractors
With the growth of your business, you will soon need to hire employees or contractors.
Trademarks Protection
You need to protect your business brand by registration and trademark copyright.
Business Contracts
You will need standard contracts for your operations. Your startup lawyer can develop contracts for your business and review contracts presented to you by your suppliers.
Stock Option Plans
Stock option plans are great incentives for contractors and employees.
Startup and incorporation lawyers can help you with all of these to ensure the smooth and successful operation of your business.
Compare startup or incorporation lawyers in Ontario by simply filling out our no-obligation form!
Should you incorporate your business in Ontario?
Incorporating your business will allow you to grow your company and raise capital by issuing shares of stocks.
Business incorporation is the expertise of startup lawyers . Consider the benefits of incorporation for your business as follows:
Limited Liability
Owners are not personally responsible for obligations and debts of the corporation. Thus, their personal assets are protected.
Tax Advantages
A corporation has flexibility and advantages in tax planning. You can take advantage of tax benefits from incorporation.
Issuance of Equity for Investment
Equity in the company can be exchanged with financial investment through shares of stocks to investors.
Separate Legal Identity
The ownership of a corporation can be transferred because it has a separate legal entity from its founders.
Ontario startup lawyers are the most important partners of new business owners. They make sure that the business and the owner are protected and help you comply with business regulations.
Buying an existing business with a business lawyer
Buying an existing business is another option for entrepreneurs! By taking over an already established business, you won’t have to start from scratch and get sustainability from a market that has already been tested.
No business is free from risk so you must do your due diligence with the help of a reputable business lawyer. Due diligence includes financial statements from the seller (3 – 5 years), tax records, assets and liabilities, debts, suppliers, receivables, and litigation history.
Doing this will determine the viability of the business and what you can earn in profits.
The Pros & Cons of buying an established business
If you are thinking of buying an existing business, weighing the pros and cons can help you make the best decision.
What are the pros of buying an existing business?
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Established customers: One of the benefits is that the business has existing customers. You will want to increase the customer base but starting the business with regular customers is a huge benefit.
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Goodwill: The business already has a reputation and brand you can benefit from.
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Immediate cash flow: You can benefit from the sales and cash flow from the moment you take over the business.
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Lower marketing costs: The business is already known and will need lower marketing costs than a new startup.
What are the cons of buying an existing business?
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Higher cost: An established business costs more than one you will build from scratch. You need to evaluate if the higher cost is worth it.
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Change of ownership: A transfer of ownership can get some resistance from customers or employees.
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Existing work culture: See if the workplace culture is in line with your vision. You may need to make significant changes to fit your goals and long-term objectives.
Change of Ownership
Many jurisdictions in Canada don’t allow individual’s names to be changed on a registered sole proprietorships or general partnerships.
In such cases, you can register a new license or incorporate. You will also need permission from the business owner if you plan to use the same business name.
A startup or incorporation lawyer can help you with all of these tasks to ensure your business acquisition is in order.
How much does a startup lawyer charge?
Small business or startup lawyers in Ontario may charge hourly rates for their services.
The rate varies depending on the expertise and reputation of the lawyer. Generally, they range from $250 to $500 an hour or more.
The total lawyer’s fees will also depend on your requirements and how much time the lawyer will work on your file.
Flat Fees and Legal Support Bundles for Greater Affordability
Other startup lawyers also offer flat fees for some legal services including incorporation, drafting of contracts, etc. There are law firms that offer affordable bundles for startups on an annual basis!
You can look for flat fee lawyers for small businesses in Ontario if you want more control over your legal costs.
Apart from the billing structure, certain factors can also affect the cost of a startup lawyer such as the complexity of your case and any research or preparations needed.
Start comparing small business lawyers in your area by filling out the free online form on this page with no obligation!
FAQs about startups in Ontario answered by legal experts
As an entrepreneur planning a startup, you want to get as much information as possible to be able to successfully launch your business.
Below are some FAQs that can get you started and help you with difficult decisions.
What qualifies as a startup?
A startup has many definitions. In general, it is a newly-established business with a goal of rapid growth by providing innovative services or products to a target market. It can be small or large, digital or operating with a physical location.
Can you operate a startup in Ontario without a license?
Yes, but only as a sole proprietorship under your name and if your area does not require business registration. Certain licenses may be required depending on the industry and your location.
What qualifies as a small business in Ontario?
A business with 1 to 99 (less than 100) salaried employees qualify as a small business.
Do I need a lawyer to start a business in Ontario?
The law does not require a business to hire a lawyer for incorporation or other steps to launch a business. However, it is highly advisable to hire a business or startup lawyer to protect your interests and ensure you are complying with federal and municipal regulations.
How do I incorporate my business?
Businesses and non-profit corporations can register, incorporate, and update information using the Ontario Business Registry .
Again, hiring a lawyer to incorporate a business is not a legal requirement but it would serve your best interests to do so.
How do startup lawyers help digital and tech businesses?
Startup lawyers will ensure your business is fully compliant, check that your privacy settings are water-tight, review data security provisions, privacy policies, and terms and conditions.
Startup lawyers are knowledgeable about technology law and will help your business step into the digital marketplace with ease.
Protect Your Business & Hire an Ontario Startup Lawyer
Startup lawyers can help you with legal concerns from the start of your business all the way through its expansion and growth.
Hiring a lawyer for small businesses or startups is an investment in your business success. We know that the cost is an important concern but keep in mind that a good lawyer can provide you with valuable support so you can reach your goals.
You are in the right place if you need a:
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Startup lawyer in Ontario
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Business Incorporation Lawyer
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Small Business Lawyer in Ontario
Fill out the online form below, free of charge, and receive no-obligation offers to compare for your business needs.