The Importance of Legal Advice

You’re not required by law to hire a lawyer to incorporate, but that doesn’t mean you shouldn’t. Here’s why:

Lawyers Won’t Leave the Job Half-Finished

Common issues when people incorporate without a lawyer:

• Failing to understand corporate maintenance requirements, leading to the corporation being struck
• Failing to provide for sufficient shares or different classes of shares
• Failing to issue shares and share certificates
• Failing to properly appoint directors
• Failing to complete corporate registers and ledgers
• Failing to include standard restrictions for private issuer status

In almost all cases, the cost to fix errors greatly exceeds the added cost of hiring a lawyer.

Lawyers Can Provide Legal Advice

Many incorporation websites have a disclaimer stating they’re not lawyers and can’t provide legal advice. That disclaimer is there to avoid liability when things go wrong.

Lawyers are Accountable and Insured

Lawyers are bound by a strict code of conduct, must keep information confidential, and maintain professional liability insurance. If you incorporate using a non-lawyer service, your recourse is limited even if they make mistakes.

Lawyers Have Education and Training

Lawyers are required to meet high standards of education, training and qualification — particularly important for something as complex as setting up a new corporation.

Getting It Wrong Could Be Devastating

Incorrect setup could lead to shareholder disputes, personal liability, tax issues, costly amendments, and other expensive problems. These are avoidable with the right advice upfront.

In our experience, successful business owners spend money to save time. Unsuccessful business owners spend time to save money.