Category archive: Corporate & Commercial Law

Incorporating Medical Professionals

Incorporating medical professionals is a key for many physicians. Whether the physician is a recent graduate or an established physician, there are a number of benefits to having a medical professional corporation ( or “MPC”). A medical professional corporation allows a physician to create a separate legal entity, one that can own assets, incur liability,…

Securing debt obligations

Lenders are usually focused on ensuring the debtor paying debt owed, but should also be focused on securing debt obligations. The lender will be thankful for its security if the debtor ever encounters financial difficulties. To do so, a lender must ensure its security is properly registered and perfected. The Ontario Personal Property Security Act…

Corporate Shareholder Benefits

Shareholders should be aware of corporate shareholder benefits and subsection 15(1) of the Income Tax Act (ITA). When the CRA audits a private corporation, it uses subsection 15(1) to ensure transactions are properly recorded. Subsection 15(1) states that where a corporation has conferred a benefit on a shareholder, the value of that benefit will be…

Employment Agreements For Employers

An employment agreement is essential for employers and employees.  Some employers and employees believe that an oral or verbal agreement is enough, or that current legislation will help them if the relationship turns sour. Although an oral or verbal employment agreement is valid in law, there are many benefits to a written employment contract and…

Canadian Controlled Private Corporations

Canadian Controlled Private Corporations (“CCPC”) enjoy numerous tax benefits. For example, a sale of CCPC shares may qualify for the Lifetime Capital Gains Exemption, CCPCs enjoy a small business deduction and they may be eligible for the Scientific Research and Experimental Development (“SR&ED”) Tax Credits. Therefore, many seek to ensure their business falls within the…

Business Owner Incorporation

The word incorporated in the dictionary

In Ontario, the Small Business Deduction allows a Canadian Controlled Private Corporation (CCPC’s) to pay tax at a lower rate on the first $500,000 of active business income providing great incentive for a business owner incorporation. If the business owner does not incorporate, personal tax rates are graduated and be over 50 per cent depending…

Business Naming, Branding and Trademarking

A branding flow-chart

Naming, Branding, and Trademarking your business in Ontario is an important step in establishing your brand. Once you have found the perfect business name, you will want to protect it. In Ontario, sole proprietors, partnerships and corporations may carry on business under a name other than the corporation’s legal name. If you do, then you must register under…

Corporate Reorganizations for the Business Owner

Corporate Reorganizations for the Business Owner

Many corporations explore using corporate reorganizations to achieve planning objectives for their shareholders. For example, creditor protection and income splitting to name two key objectives. However, what may appear to be a common transaction can lead to unforeseen income tax consequences when dealing with non-arm’s-length (NAL) parties. For the most part, shareholders are considered non-arm’s…

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