It can be easy to forget all the legal obligations you have as a corporate owner. We are not talking about taxes, which are always with us. With your incorporation comes reporting and record-keeping requirements that never go away. Do you know what those requirements are? Failure to meet reporting and record-keeping requirements could prove very costly with fines or other penalties involved.
A professional corporation is just one of many business forms available in Canada. However, as the name suggests, the professional corporation was created to serve the needs of – you guessed it – professionals who want to form a business group with other professionals.
There is a lot involved in selling a house in Canada. There is all the real estate stuff – setting a price, listing the house, arranging open house viewings, dealing with offers to buy, negotiating with potential buyers, finding a closing agent, and closing the sale.
The Canada Business Corporations Act and other federal laws set forth a fairly narrow definition of a corporate reorganization, primarily applying to corporations that are insolvent, or in other words, bankrupt. In general, insolvent corporations reorganize or dissolve, and those are both obviously forms of reorganization. However, in common usage, reorganization has taken on a broader meaning that can include any number of measures by a corporation that have nothing to do with insolvency or bankruptcy. Anytime a business changes its structure in some way, that is considered a reorganization in the business world. The changes can be minor or significant – reorganization is a flexible tool for business to accomplish any number of goals.
Obviously, no one starts a business on a whim and one day just opens up shop. Months, sometimes years, of planning occur before a business actually opens to the public. From the most basic of questions, such as what kind of business you plan to engage in, to more complicated questions, including whether you will have partners or investors, who will own how much of the business, and related issues, a great deal of thought goes into forming and opening a business. Often, opening a business can be the most expensive, ambitious, and risky endeavour you will ever undertake. Proper planning matters.
