Legal advice advised for new business owners

Here’s some advice for the year ahead.

If you plan to start a new business in 2015, consider seeking professional advice from an accountant and lawyer early in the process. Consider how to structure your business because it can have important tax and liability implications.
The same advice applies if you plan to buy or sell a business in 2015. People often target Dec. 31 for a closing date, and while the appeal of such a date is clear, consider that that month is often the busiest time for corporate lawyers. That reality, along with the closures of government offices and financial institutions and individual holiday schedules could result in a late closing and/or increased costs.

Recently, some financial institutions have begun imposing their own internal form of “verification” requirement with respect to powers of attorney.

Billable rates for lawyers often increase at the beginning of the calendar year.
If you plan to extend credit as part of your business in 2015, speak to a lawyer beforehand to learn how best to protect yourself if the agreed-upon terms are not met.

If you haven’t yet talked about estate planning with a lawyer, consider doing it in 2015. We are often asked if online will kits are valid. Such kits are usually sold as a “one size fits all” package and are the same regardless of which province, territory, or country you live in. We caution people against using them because the laws governing wills vary by jurisdiction. To obtain the best possible advice, speak to a lawyer in the province where you live.
If you have a will that was prepared some time ago, review it to make sure that it continues to reflect your circumstances and your wishes.

If you are in a common-law relationship or plan to marry in 2015, consider whether you would benefit from speaking to a lawyer about an interspousal contract. Are you bringing assets into the relationship that you do not want to be subject to division if the relationship ends?
If you are in a relationship and have adult children from a previous relationship, consider discussing your after-death wishes with your children. Do you consider your new partner your spouse? Does the law consider your new partner your spouse? The likelihood of estate litigation can be reduced by understanding the law and making your wishes clear to your family.
Does your succession planning involve putting certain assets into joint names with your adult child in 2015? Obtain professional advice from an accountant and lawyer before doing so. Your child’s personal taxes could be affected, and your asset could be liable to claims by your child’s spouse or creditors.
Is an employment change in the forecast for 2015? Do you know your responsibilities, rights and entitlements if you quit? How much notice do you have to provide? Do you have a pension? What are your options regarding your pension upon departure?