Legal Resource Center
If you’re in the process of buying a business, you’ve likely been presented with the company’s Notice to Reader financial statements. An unaudited financial statement prepared by an accountant, a Notice to Reader can be an excellent indication of a business’s current financial situation. But… It’s not the be-all and end-all. Did You Know? There are three levels of financial statements: The Notice to Reader The Review Engagement The Audit Notice to Reader The Notice to Reader is a financial statement prepared by an accountant in accordance with Canadian standards but all of the numbers are based on information provided by management and are not independently verified. Review Engagement The Review Engagement involves a significantly greater number of processes than
Did You Know? The government sanctioned HST rebate program is a dollar amount already reflected in new home purchase prices. When you buy directly from a builder, the purchase price you see already has the HST rebate built into it. While this sounds fine and dandy upon first glance, it can actually be quite misleading when we get to the crux of the matter because this already reduced purchase priceonly applies to buyers who plan to live in the property they’re purchasing. But What If You’re an Investor? Oftentimes investors aren’t notified of the fact that they must pay the HST rebate until they’re about to close on their property and the words “investment property” somehow make their way to
You’ve probably heard it before. Heck, you may have even incorporated your business under this assumption: corporations limit personal liability. While this is certainly true, there’s a little more to it than that. As is the case so often in legal matters, the situation isn’t always cut and dry – in fact, it rarely is. And it’s the same for corporations. Limited Personal Liability – Defined Limited personal liability refers to the fact that an owner’s personal assets are protected from the corporation’s creditors. If, for instance, you own the corporation and you find yourself facing a court judgment which states that your company owes a creditor $100,000, the courts cannot force you to use personal assets to pay the
Interest rates are historically low in Canada. Prime sits comfortably at 3.0% and it’s possible to acquire a 3-year residential mortgage at a rate under 3.0%! Today, commercial lending rates typically range between 4.0% and 6.5% compared to over 15% some thirty odd years ago. We all know what low interest rates mean in the residential market, but what about the commercial sector? As a business owner, how can you benefit from the Bank of Canada’s current prime lending rate? If you’re considering a sale, now may be the perfect time. Timing the sale of a business is an impossible decision. Not only must you consider a myriad of personal factors that may influence your choice, but you want to
Remember our article from a few months back: Buy a Franchise or Start My Own Business? We explored the differences between independent startups and franchise initiatives, touching on a few key points, but one in particular stands out in light of the latest NBA controversy involving Mr. Donald Sterling… How much power do you really have as a franchisee owner? In a franchise arrangement, on the surface it seems as though you are in much the same position as any business owner. You own your establishment. Or do you? In the case of Donald Sterling, let’s break down the sequence of events: Vile, racist comments are made However revolting, these comments don’t change the fact that he owns the Los Angeles
Sounds simple enough, doesn’t it? You might be surprised to know just how many closing costs there actually are. When you try to go it alone without a legal advisor to inform you in advance, it’s easy for some to be overlooked or missed. But they certainly don’t go away. Instead, you’ll be hit in the face with a cold splash of reality on closing day. Closing costs are somewhat different between new home purchases and resales. Here is a list ofnew home closing costs that you can expect to pay upon the finalization of your property purchase. Land Transfer Tax Land transfer tax is payable for both new home and resale purchases, however the calculations differ slightly between the