21 JuneCreate the business of your dreams for less than 2600 $
As we know : Quebec is filled with entrepreneurs and aspirants-entrepreneurs, head full of new projects always more innovative and ingenious. What stop them ? As Lex Start previously mentioned in its last report on legal industry (french report), financial constraint and the complexity of legal procedures are principal obstacles. As a facilitator of legal process for entrepreneurs, Lex Start tell you how to create and provide your company the legal documents needed, for 2600 $ only ! On you marks, get set, go !
Step 1: the incorporation (800 $)
Crucial stage, the incorporation enables your company to exist. Although, it’s not the only potential legal statute, it’s the most used. After that, your company will have its own legal personality separate from yours. Its activities, incomes, spending, profits will be differentiated from yours. It permits to avoid the risks you personally incur in your business. As mentioned in our previous article, the incorporation process can be settled under Quebec’s business corporation act (provincial corporation) or under Canada’s business corporation act. Moreover, incorporate your company will permit you to choose a personalized name. You can still decide to have a digital name, which will be granted by Corporation Canada (if you incorporate under Canada’s law) or by the company's register (if you incorporate under Québec’s law). If you incorporate with Lex Start, you will obtain, as a bonus, a personalized name, company's article of incorporation and your minute book which are essential documents in every incorporated companies.
Step 2: the shareholders agreement (800$)
Here it is ! Your corporation is now constituted ! As you know, it is composed of shareholders who contribute, by purchasing shares, to the financing of the company. As a balance, they usually receive dividends, in other words, a share in the profits of corporation. Beside shares, shareholders can also have other rights related to the company. Even if, the incorporation and the beginning of a business project are really exciting, you have to keep in mind that everything could change and that the current agreement between shareholders can easily become a conflictual situation. You will feel lucky to have signed a shareholders agreements if it turns as bad. As we previously mentioned in this article (french article), a shareholders agreement is like a marriage contract, It’s always better to have one when things are going well ! The shareholder agreement formulates the rights and obligations own by a shareholder on the whole shareholding and towards the company. For example, the agreement can plans how the resolution of conflict will operate when a dispute exists between shareholders. The sale of shares’ procedure by a shareholder to a third party will be detailed as well as the conditions of a shareholders’ exclusion. Lex starts offers a complete shareholders agreement and three hours with one of our partner lawyer.
Step 3 : The terms and conditions of use (500 $)
In the digital age we live, business and internet are deeply linked. Indeed, it is not a surprise that most of the startup want to develop a mobile app. If it’s the case of your new business, you have to obtain the terms of conditions of your website. This invaluable document specify the usage that could be done of you website by your clients and users in general. For example, according to this policy, you may delete hateful or insultive comments on your website or social networks. This document will also allow you to reduce your responsibility concerning informations shown on your website and linked sites. More significantly, if your company sells online, this document will establish delivery terms and under which conditions customers may return, exchange their purchased goods or even obtain a reimbursement. Companies have to make those informations available in accordance with article 54.4 of Quebec’s Consumer Protection Act.
Step 4 : Unilateral confidentiality agreement (500 $)
Whether it be future partners or future shareholders, you will meet people interested in your business project. You may even exchange about your business model, products or services. Thus, these individuals could have vital informations in their hands concerning what make your business so unique and competitive on the market. To ensure that these informations remain confidential, you can obtain Non disclosure agreement, which will be signed by those future partners and shareholders. This agreement will permit you, to clarify which informations must be kept confidential and to indicate which sanctions those who violate the confidentiality agreement will face. Lex start offers you a confidentiality agreement and a two hours consultation with one of our partners lawyer only for 500 $ !You have created and legally equipped your company for 2600 $ ! It wasn’t so complicated ! Obviously, depending on your business model, your company may require other legal documents. For example, if you sell your goods or services on internet, it would be interesting to obtain general terms and conditions of sale. This document will establish delivery terms and under which conditions customers may return, exchange their purchased goods or even obtain a reimbursement. Moreover, if your business model is a personal services business, a service contract describing services you are committed to offer to customers and the remuneration you will receive from them, could be relevant.
Don’t forget to have a look at our contract repertoire, we’ve got shoes to fill !
Me Gilles de Saint-Exupéry, L.L.M.