What is a corporate minute book and why you need one?

A corporate minute book operates as the official record of your corporation’s activities. Any and all corporate transactions that involve your corporation should be documented in this book. Below are some documents that must be included:

• Articles of incorporation

• Corporation by-laws

• Registers of directors, officers, and shareholders’

• Resolutions of the directors and officers

• Notices and registrations filed with the registry

• Share certificates

• Meeting minutes

• Shareholders’ agreement

4 Things To Consider When Selling Your Business

You might be selling your business because you're ready to retire, because you want to pass it down to the next generation, or perhaps because you have just moved on and you want to pursue different business opportunities. There are some really key items that you're going to want to start thinking about.

Are you structuring your sale through assets or shares?

So goes the old saying, acquire assets, sell shares, with the notion being that it is somewhat more tax beneficial to purchase shares and slightly more tax advantageous for the seller to sell their shares. On the asset side, the rationale for this was that there used to be certain tax factors connected with a company's goodwill that made it highly favorable for a purchaser to buy those assets; those advantages are no longer as important as they once were. However, on the selling of shares, this is still very much the case. Because in Canada, there is a provision known as the lifetime capital gains exemption, which allows you to deduct up to $850,000 of the capital gain on the sale of your business. That is the price difference between the adjusted cost base, or the original purchase price of the firm, which is frequently minimal if you founded it yourself, and the real exit price. If you were able to take full advantage of the lifetime capital gains exemption on the sale of your company, and your company was worth $850,000.

When you are looking to incorporate a company in B.C., you need to really consider what you are going to name the company. There are two options when it comes to naming a company In B.C.

1.Numbered Company

The first option is to have a numbered company. Here, the corporate registry assigns a number followed by ‘B.C. Ltd.’. The assigned number is the incorporation number assigned to the company, so an example of a numbered company could be 1234567 B.C. Ltd.

Most Common Reasons Small Business Owners Get Sued

Setting up a small business is a complex process and it requires investing lots of time and money. Having to deal with lawsuits can completely destroy the investment and small business. This is why it is critical that you take steps to put in place the appropriate protective measures that will protect you and your business. Here are some common reasons why small business owners get sued and ways to avoid them.

Liability

Liability is possible in almost every business and it is impossible to negate all risks of liability. However, you can take out various types of insurance to protect yourself and your business as much as possible. This can include but is not limited to business liability insurance, product liability insurance, property insurance and cyber liability insurance. The types of insurance you get is specific to your business needs and a small business lawyer can help you determine what is necessary.