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NOTARY OFFICES: Essential services does not mean that it is mandatory for notary offices to remain open, it allows it. Consult the strict standards to protect the public.
REMOTE NOTARIAL DEED: Since April 1st, notaries are allowed to sign a notarized document remotely. This is not compulsory and notaries are free to use this additional tool or not. Thank you for your patience as delays due to the implementation of the solution in the notaries’ offices may occur. Consult the steps and application procedures.
CHAMBRE DES NOTAIRES OFFICES: The Chamber's offices are open, but due to the circumstances related to the coronavirus some services are offered remotely. Additional delays apply for requests for searches in Registers of Testamentary Dispositions and Mandates, as well as for requests for a Certificate of Quality and Authenticity. However, the analysis of all new applications for financial assistance is suspended until further notice.

 

 
Home > Business > Starting a business > Why use a notary specialized in business law?

Why use a notary specialized in business law?

Why retain the services of a notary who specializes in business law?
For the self-employed and SME owners, it can be very risky to let their personal property get mixed up with the assets of their business. In doing so, they can expose themselves to serious financial difficulties and even professional liability lawsuits. Sometimes simple legal advice can prevent your life savings from being put at risk. Why take the chance?

Protecting your personal assets
There are many obvious ways to protect your assets and separate your personal assets from your business assets. In recent decades, protective measures against the risks specific to the business world have been greatly refined. There was a time when the classic solution was to transfer ownership of certain property – mainly the family home – to the spouse. Today, new strategies have emerged. For example, a protective trust is one of the instruments available to notaries to safeguard your assets.

The notary will review your professional liability insurance coverage and check whether your personal assets are secured against the company's activities.

Ensuring the smooth succession of your business
Many SMEs are threatened in the short or long term by the lack of a succession plan. The notary can target members of the founder’s family or key company employees and approach them. In this regard, several types of planning are possible, such as having the SME purchase life insurance on the founder.

Minimizing the tax impact on the business
The notary may also take steps to minimize the tax liability resulting from the transfer of a business. Different strategies are available, such as an estate freeze, which is a highly effective way to preserve the entrepreneurs' patrimony. Notaries can play a preventive role by anticipating the consequences of certain future events (death, dissolution, sale or simple transfer of the business, etc.). 

A good tax planning strategy should consider various options such as:

  • crystallization of the capital gain
  • estate freeze
  • management company
  • share buy-back program

Helping you access financing
To achieve its fullest potential, your company needs a sound financial foundation. Notaries have the legal training and business knowledge to help you develop realistic financing initiatives that are perfectly suited to your company.

They can develop a credible integrated financing plan and present it to potential financial partners. The factors your notary will take into consideration include:

  • available sources of funds (shareholder advances, line of credit, mortgage, equity loan, etc.)
  • guarantees that need to be provided (security on property and personal guarantees)
  • assistance programs and subsidies, if appropriate and available

Whether you are launching a company, restructuring after a few years or transferring control, the question of financing is a crucial one. By calling on a notary’s expertise, you will give yourself the best chances of success.

Transfer in the event of incapacity
What will happen if you become incapable of managing your company at some point? A mandate in case of incapacity allows you to avoid family conflicts by designating the person you consider best qualified to run the company.

Protecting your family upon your death
A will is by far the safest way to plan the gradual take-over of your company by the next generation. A notary is the ideal professional to determine the best method of allocating property and reducing the taxes payable on death, if possible.




 
 

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