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Is your business looking at performing a transaction that has possible tax implications? Our law firm is well versed and able to provide you with legal advice on the possible impact of various transactions for your company.
Throughout the life of a business, it is likely to encounter a wide range of transactions such as incorporation, mergers, sales, purchases, and succession planning. No matter the size of your business, an experienced business lawyer can help you understand the legal, financial and practical considerations for each business transaction.
Taxable transactions are exchange transactions that involve the reception of taxable income. Engaging in major business transactions such as incorporation, mergers, or business succession planning could have significant tax consequences for your business.
TAX IMPLICATIONS OF VARIOUS BUSINESS TRANSACTIONS
The following are examples of business transactions that could pose tax implications for your business:
Incorporation is a legal process that sets up a corporation as a legal entity separate from its business owners.
There are numerous tax advantages available to corporations such as:
Our transactional lawyers can help you maximize the tax benefits, lower effective tax rates or otherwise achieve your tax specific goals when incorporating your business.
Mergers are business transactions in which separate existing companies are consolidated into one company. Mergers are one of the most complex areas of taxation because the tax implications of mergers depend on a multitude of factors. These factors include the sector of the company, whether or not both companies are Canadian, the application of capital and non-capital losses, and many more.
Our transactional attorneys can help you navigate the legal matters surrounding your merger and advise you on the tax implications of the factors specific to the acquisition of your business.
Succession planning is the process of preparing experienced and capable employees to replace leaders when they leave, retire, or die. Deciding who will take over your business has numerous tax implications, especially when it involves a sale. This is why succession planning and tax planning tend to go hand in hand.
It’s important to consider the tax implications of your succession plans before committing to a specific plan because each structure has long term tax implications. While certain structures result in capital gains, others result in dividend rates, and, in some circumstances, regular income may be fully taxed.
Consulting a transactional attorney on legal matters such as succession planning will help you mitigate taxation risk and legal issues. Your lawyers will help you design the most advantageous structure to yield optimal results.
Selling a business
In Canada, you can either sell a business through the sale of shares, the sale of assets, or a hybrid sale of shares and assets. Each option comes with a number of tax implications that need to be carefully considered before moving forward with the sale.
At Navigator Law, we understand that those looking to sell their business want to enjoy as much of their hard-earned money as possible. Our transactional lawyers will help you choose the best option and develop a concrete sale agreement to minimize your taxes, maximize your income from the sale, and avoid legal issues.
At Navigator Law, our transactional attorneys are experienced in multiple areas of law including commercial law, business law, tax law, and transactional law. Our legal practice can help businesses with addressing tax matters for a variety of complex business and commercial transactions.
Our business lawyers are skilled in developing strong lawyer-client relationships so they are able to better serve the specific needs of your business for each business transaction.
FREQUENTLY ASKED QUESTIONS
Transactional law is a broad area of law covering all business industries. Areas of transactional law include corporate law, commercial/business law, intellectual property law and many more. Transactional lawyers provide counsel on the legal issues generated by business dealings. At Navigator, we can help advise on the tax implications of business transactions.
Whether you’re looking to incorporate your business, sell your business, engage in private placements or any other business transaction, it is always better to consult a lawyer earlier rather than later. The sooner you reach out for legal services, the better your transactional lawyer can mitigate taxation risk and maximize your savings.
At Navigator Law, our real estate lawyers can provide guidance through commercial real estate transactions by assisting with the negotiation process, helping you understand contract terms, and highlighting any due diligence issues.
A properly executed will can provide you peace of mind in knowing your interests are protected. Our wills lawyers have 30+ years of experience working with wills & estates. We can help you ensure your wishes and intentions are correctly drafted with a minimum of expense and delay for your family and beneficiaries.