Get essential legal tips for new businesses in Canada, from incorporation to employment laws and commercial leases.
Starting or expanding a business in Canada is an exciting opportunity, but it also comes with important legal responsibilities. Whether you’re a first-time entrepreneur or a growing small business in Ontario, having the right legal foundation can help you avoid costly mistakes. Here are some essential legal tips to set your business up for success.
1. Choose the Right Business Structure
One of your first big decisions is choosing a business structure. Will you operate as a sole proprietorship, partnership, or corporation?
- Sole proprietorships are simple but leave you personally liable for debts.
- Partnerships split responsibility but require clear agreements to avoid disputes.
- Incorporation protects your personal assets but involves more regulations.
A lawyer can help you pick the best option based on taxes, liability, and long-term goals.
2. Understand Employment Standards in Ontario
Hiring employees means following Ontario’s Employment Standards Act (ESA). Key rules include:
- Minimum wage requirements
- Overtime pay
- Termination notice (or pay in lieu)
- Vacation and leave entitlements
Having well-drafted employment contracts and workplace policies ensures compliance and reduces legal risks.
3. Negotiate and Draft Commercial Contracts Wisely
Renting a business space? Drafting a contract for a supply of goods or services? Negotiating terms and conditions with a supplier or customer? Before signing, consider:
- Commercial Contracts: Risk allocation, indemnification, parties’ obligations upon termination (who is responsible for what?)
- Lease Agreements: Rent increases (are they fixed or market-based?), maintenance responsibilities (who handles repairs?), renewal options (whose option it is and on what terms?)
- Contract Management: Contract management system (are all your contracts properly authorized, executed, and available?)
A lawyer can review the lease to protect your interests.
4. Protect Your Intellectual Property (IP)
Your business name, logo, and inventions are valuable assets. Protect them by:
- Registering trademarks (to prevent others from using your brand)
- Filing patents (if you’ve created a unique product)
- Using copyrights (for original content, like websites or marketing materials)
Taking these steps early prevents costly disputes later.
5. Stay Compliant with Business Regulations
Ontario businesses must follow:
- Tax filings (HST, payroll deductions, corporate taxes)
- Licenses and permits (depending on your industry)
- Privacy laws (if you collect customer data)
Regular legal check-ins help avoid fines or unexpected legal trouble.
6. Plan for Disputes Before They Happen
Even the best-run businesses face conflicts—with customers, suppliers, or partners. Having clear contracts with dispute resolution clauses can save time and money.
Need Legal Help? We Support Ontario Businesses
At Boardwalk Law, we help entrepreneurs and small businesses navigate legal challenges—from incorporation to employment law and commercial leases. Our corporate law team provides practical advice so you can focus on growth.
Contact us today to book a consultation and keep your business protected!
