With rising unemployment rates, there is a silver lining. For many, the downturn in the economy presents an opportunity to start your own business and become self-employed. As with any opportunity, there are many risks and challenges for the budding entrepreneur.

Last week, I was asked by a potential client about the advantages of having a lawyer incorporate his business versus getting an incorporation kit. Although an incorporation kit may cost less initially, oftentimes, the costs to fix issues down the road can lead to more headache then if a person had used a lawyer in the first place.

For instance, what happens if there is a dispute amongst the business owners? Sometimes, the business owners can work it out but sometimes, that does not happen unfortunately. A combination of proper planning and an agreement to cover the business relationship may help to solve disputes with less fuss, and hopefully, no litigation. For instance, a basic incorporation agreement or unanimous shareholder agreement are invaluable tools for a business venture.

Do you have a contract that will cover the provision of services or product that your business will be providing? All too often, we see contracts that are inadequate and do not provide the protections that a properly drafted contract would have afforded the business owner. Placing a whole bunch of “legalese” without knowing what these clauses are meant to protect may mean that your contract is ambiguous and potentially, unenforceable.

Another great resource is seeking the advice of a professional accountant. Your accountant should be able to provide you with advice that will help get your business on the right track.

Seeking the advice of a lawyer (and an accountant) earlier on in the planning stages of starting your business may save you a lot of headache later on.

By Christina Dao B. Comm, JD, Associate at Aarbo Fuldauer LLP

For more information, please contact the law office of Aarbo Fuldauer LLP at:

Address: 3rd Floor, 1131 Kensington Road NW, Calgary, AB, T2N 3P4
Phone: (403) 571-5120
Email: [email protected]

Christina Dao
Barrister & Solicitor
www.aflawyers.ca

*The information contained in this blog is not legal advice. It should not be construed as legal advice and should not be relied upon as such. If you require legal assistance, please contact a lawyer*