Incorporations
5 Reasons to hire a Real Estate Lawyer to Incorporate Your Business
As a veteran business owner, you may be familiar with different types of agreements as they relate to your commercial property, including commercial real estate transactions. This is very important for businesses that deal in commercial properties, e.g. purchasing and selling them. Consequently, working with an experienced real estate legal team like the Makaronets Real Estate Law Firm can be very beneficial, especially when it comes to incorporating your business.
The different Types of Business Structures (Corporations)
There are two primary reasons that incorporating businesses in the city of Vaughan, the Regional Municipality of York, and throughout Ontario Province is so important. First, incorporation enables you to safeguard your personal assets by protecting them from creditors. Second, and equally as important, incorporating your business provides you with a more favorable tax treatment for your business income. In Canada, there are 4 different types of corporations as follows:
Canadian-controlled Private Corporation
according to the Canadian Government, a Canadian-controlled private corporation, or CCPC as it is more commonly referred to “is a private corporation. It is a corporation that was resident in Canada and was either incorporated in Canada or resident in Canada from June 18, 1971, to the end of the tax year. It is not controlled directly or indirectly by one or more non-resident persons.”
Control by a Public Corporation
this is a subsidiary of the public corporation listed below. However, it doesn’t qualify as one when you are filing your T2 Corporation Income Tax Return. Furthermore, any corporation that cannot be categorized as any of the other 3 types of corporations listed here is classified as an “other corporation.”
Other Private Corporation
This is a private corporation that is a resident of Canada and meets the following 3 conditions:
- It isn’t controlled by one or multiple corporations
- It isn’t controlled by one or multiple prescribed Federal Crown corporations
- It isn’t controlled by a combination that’s described in the two conditions above
Public Corporation
Public corporations are defined as having shares of stock that are listed on a Canadian stock exchange. However, it may elect to be designated as a public corporation (see Income Tax Regulations, Regulation 4800(1).
Having the Makaronets Real Estate Law Firm assist you with the incorporation of your business will enhance your credibility and reduce your liability. One of the key reasons to incorporate is that you are taxed differently from other types of businesses. Also, corporations are legal entities that are taxed separately from individuals.
The Benefits of hiring a Real Estate Lawyer
Most individuals are reluctant to hire a real estate lawyer when purchasing or selling commercial or residential property because they think this should only be done when something bad is happening such as getting divorced or having criminal charges filed against you. However, this isn’t always the case when you hire a real estate lawyer to assist in the incorporation of your business. There 6 benefits of hiring the Makaronets Real Estate Law Firm when incorporating your business:
- Our lawyers are experienced at reviewing home inspection reports and disclosures.
- Our lawyers are expert negotiators and in a much better position to achieve a favorable outcome when representing you in any legal issues.
- Our lawyers are highly experienced at drafting and interpreting complex contracts such as articles of incorporation.
- Our lawyers can help prepare closing documents, filing deeds, and resolve any last-minute legal disputes that may arise during this stage of a real estate transaction.
- Our lawyers handle all the paperwork in any type of real estate transactions including appraisals, disclosures, HOA documents, home inspection reports, sales contracts and much, much more.
- Our lawyers have the experience required to conduct lien and title searches for all types of properties.
At the Makaronets Real Estate Law Firm, our legal team will provide the advice and protection you deserve when incorporating your business. For more information or to schedule a consultation, contact us today.
