Business Law - (705) 268-6492
If you wish to start up your business, you will need to consider if you will do so by way of a sole proprietorship, a partnership, or incorporation. There are advantages and disadvantages to proceeding with each of these methods of operating a business.
If you wish to purchase or sell a business it is important to get legal advice and accounting advice before you start negotiating with a vendor or a purchaser.
The first thing we need to determine is what type of purchase is more favorable to you. Is it? :
- an asset purchase/sale where you only purchase or sell all the assets business only; or
- a share purchase/sale where you are purchasing or selling the shares of the company;
There are advantages and disadvantages of proceeding with either of the above methods of purchasing or selling a business and there are income tax considerations that need to be taken into account.
Also, there are typically employees involved in the sale or purchase of a business. Before negotiating, we need to ascertain if the purchaser will be accepting all the employees of the business and the liability that will come with such a decision.
We need to consider if there are any employment contracts that we need to be mindful of before proceeding with the negotiation of the sale or purchase of the business involved. Are those employment contracts enforceable?
Are there any legal actions or a Human Rights complaint filed against the business and its owners? It is important to know all this information so that you don’t end up with the present owners’ liabilities.