ANALYSIS OF THE SITUATION AND THE GOALS TO BE ACHIEVED
To allow you to achieve your goals, the notary will conduct a rigorous analysis of the legal situation of your company. Together with you, he can develop a real action plan to help you reach your goals. An analysis of the basic characteristics of your business is an essential prerequisite in order to establish the legal form that suits it best.
Such an analysis is obviously desirable at the start-up stage of the business, but it can also occur from time to time. Indeed, the evolution of the company or the emergence of new needs or projects could force you to carry out a new analysis.
LEGAL FORMS OF THE COMPANY
Given certain unavoidable factors, such as the size of your down payment, your desire to work as a team or not and your managerial skills, your notary will clearly explain the advantages and disadvantages of the various legal forms available to the company. Thus, it will inform you about the possible choices regarding:
- personal and individual business;
- the various types of companies: the corporation governed by federal law or the one created under the laws of Quebec;
- the business carried on in another form.
With the full and detailed explanations from the notary, you will be able to make an informed choice and you will know exactly what to expect from the legal and tax consequences resulting from this choice.
For his part, the notary will then be able to draft the documents necessary for the constitution or the modification of the structure of your company, whether it is a company contract, a shareholders agreement or any other appropriate document.
Today, taxation has become a key factor for sound business management. Here again, some notaries have acquired all the necessary skills to help you prepare a complete tax planning strategy taking into account various possibilities, such as:
- capital gain crystallizations;
- estate freeze;
- management companies;
- share buyback programs.
In addition, the expert notary will also be able to assess the tax consequences of the sale of your business on your assets and that of your heirs.
FINANCING THE COMPANY: BECAUSE MONEY DOES NOT GROW IN THE TREES!
Money is the nerve of war. Your business needs a sound financial foundation to ensure its full development. Thanks to his legal training and his commitment to the business world, the notary will be able to participate in the design of realistic financing projects perfectly suited to your business.
He will be completely at ease in developing and gaining acceptance by potential financial partners of an integrated financing plan taking into account:
- the sources of funds available (shareholder advances, credit, mortgage, equity loan, etc.);
- the guarantees to be provided (real security and personal guarantees);
- assistance and subsidy programs, where applicable.
Throughout the life of a business, financing remains a daily concern, as much at the time of start-up or restructuring as at the time of an acquisition or expansion project. The same will also apply when you reach the stage of transferring your business to the next generation or to third parties. The intervention of your notary will allow you to negotiate these financial agreements.
WHAT IF AN ACCIDENT HAPPENS TO YOU?
WHAT WOULD HAPPEN IF ONE DAY YOU BECAME UNABLE TO MANAGE YOUR BUSINESS, TO MAKE THE NECESSARY DECISIONS?
Even if nobody wants this situation to occur, your notary will still advise you to sign a mandate in anticipation of your incapacity. Among other things, this mandate will take care to mention who, in the event of your incapacity to act, must ensure the succession and take the reins of the company.
Such an initiative allows you to choose yourself the person you consider best suited to run the business and very often ensures that there is no conflict and divisions in the family.
The texts come entirely from the brochures of the Chambre des notaires du Québec.