Incorporating a Business Why? Benefits:

The Shareholders Agreement , Why Bother?

What is the Ontario Personal Property Security Registration (PPSR) System?

Why is the need for estate planning in Canada?

Incorporating a Business Why? Benefits:

You incorporate a company mainly to create a new legal entity -  i.e. a new, taxpaying corporate body with its own "soul" and presence.  Even if you are a one person business the advantages of Incorporating a company are many:

• Personal liability protection (to a great extent).
• Substantial tax advantages especially when you sell a business.
• High degree of flexibility in personal financial planning.
• Greater control in transferring business ownership.
• Easy to bring an outside investors and other shareholders.
• An Incorporated may last indefinitely.

The Shareholders Agreement , Why Bother?

When a company is created, its founding shareholders determine how a company will be owned and managed. This takes the form of a "shareholders agreement". Not having such an agreement can lead to serious problems and can result in corporate failure.

Companies are incorporated in a particular jurisdiction (e.g. State, Province or Country) and must adhere to the applicable legislation, e.g. the Canada Business Corporations Act. This legislation lays out the ground rules for corporate governance - what you can and cannot do, e.g. who can be a director? can a company issue shares? how can you buy or sell shares? etc

What is the Ontario Personal Property Security Registration (PPSR) System?

The PPSR system records and reproduces information concerning consumer and business loans where goods and other personal property are used as collateral to secure loans. For example, a person buys a car and borrows money from a bank to pay for it. The borrower and the bank enter into an agreement giving the bank rights to the car if the borrower does not repay the loan. The system also records and reproduces information concerning repair and storage liens.

Lenders and borrowers enter into what are called “security agreements.” The lender registers a “notice” of the agreement in the PPSR system. This is done by completing and submitting a document called a “financing statement” to the Companies and Personal Property Security Branch of the Ministry of Government Services.

Before buying a used car or other used goods, consumers must arrange for a Personal Property Security Act (PPSA) search to protect themselves financially. Generally this Search is done by Lawyers.

Estate planning is all about preserving what you have worked so hard at acquiring, your wealth. It is often a complicated process and even intimidating, which is why we at Miles Law office approach it in a step by step manner. We ensure that you are involved and understand the benefits of our proposed solutions.