Business Structures and More: Commonly Asked Questions by Small Business Owners

As a small business law firm in Vancouver, we recognize that starting and running a small business comes with many questions. In this article, we will answer some of the commonly asked questions by small business owners in BC, such as business structures, commercial leases, employment contracts and more!

How do you find commercial property in BC?

Before you go online and search for commercial real estate for your new business, you should ask yourself the following:

• Which location would be best for my business?
• What size of real estate is best for my business?
• What is my budget?

BC is a big province, and comes with plenty of options for commercial real estate. When you have answers to these questions, you will narrow down your options. 

You can start your search with popular real estate listing websites such as Remax or Realtor.ca

Do I need a lawyer to draft or review a commercial lease contract?

Yes, we definitely recommend consulting with a commercial real estate lawyer in BC before you draft or sign your lease contract. Commercial real estate contracts are more complicated than residential real estate contracts, by consulting a real estate lawyer you can protect your interests and ensure that the lease protects your business from unexpected costs, liabilities, and potential disputes.

When it comes to leasing commercial property in Vancouver and British Columbia, in general, many complex problems can arise. Whether you are about to settle into a brand-new office unit, or renew a long-term lease agreement in a warehouse, Winright Law is here to provide you guidance. The best way for landlords and tenants to protect themselves is by retaining a commercial property lawyer that can make sure the entire commercial leasing process goes smoothly.

What is the best business structure for my business?

There are three common business structures in Canada; sole proprietorship, partnership and corporation. They are all different, and the best structure for your business depends on your goals. To choose the best structure for your business, it is important to consult a corporate lawyer. 

Sole Proprietorship

Sole proprietorship is a business structure where one person owns the business. In a sole proprietorship, there is no legal separation between the business and the owner. Meaning that the owner is solely responsible for all aspects of the business. The owner is also responsible for the business’s debts, losses and legal liabilities. 

This type of structure is best suited for entrepreneurs and small businesses that are owned and operated by one person.

General Partnership

Partnership is similar to sole proprietorship. While in sole proprietorship, there is only one owner, in partnership, there are at least two or more partners. The partners share the responsibilities, assets, profits, and losses of the business. 

In order to form a partnership, you would need a written agreement. A partnership agreement is a legal contract that shows two or more people have agreed to operate a business together. It outlines the rights and responsibilities, rules of the business. 

If you are entering into a partnership, you should consult a business lawyer in bc to make sure that you cover all your bases, rights and liabilities. 

Corporation

Corporations are more complicated than the other two business structures. In corporations, the business is separate from the owners. A corporation can own assets, enter into contracts and be sued. 

To learn more about the advantages and disadvantages of incorporation, please check out our extensive article here.

Incorporating a business in British Columbia involves several key legal steps, all of which our experienced lawyers are equipped to manage, including:

• Securing approval of your company name
• Drafting and filing articles of incorporation
• Defining director responsibilities and governance structures
• Preparing and negotiating shareholder agreements
• Structuring share classes with special rights or restrictions
• Ensuring compliance with corporate resolutions and bylaws

With our extensive experience in legal services for startups, we manage the legal complexities of incorporation, allowing you to focus on your business’s strategic and operational goals.

In conclusion

Choosing the right structure for your business in BC, depends on your goals, plans and the amount of risk you are willing to take.

Starting a business  is a complex undertaking that requires careful legal planning and expertise. When navigating the process of starting a business in British Columbia, it’s essential to ensure that all legal aspects are addressed from the outset. At Winright Law, our team of experienced small business lawyers provides comprehensive legal services for startups, guiding you through incorporation and beyond, allowing you to focus on growing your business. 

How to draft employment contracts?

A well drafted employment contract protects both the employer and the employees. It is best that you see a business lawyer for employment contracts of any kind. An employment contract can help you ensure compliance with BC labour laws, and it clearly outlines roles and responsibilities, salary, termination clauses and confidentiality terms. 

Poorly written contracts can expose your business to significant legal risks. It is always a good idea to hire a contract lawyer to review your employment contracts. 

Final Thoughts

As a business law firm in Vancouver BC, we believe in building lasting relationships with our clients. As your trusted business lawyer and business legal advisor, we take the time to understand your company’s unique challenges and opportunities. Our team provides hands-on assistance with drafting contracts and essential legal documents, including:

• Service Contracts
• Employment Offer Letters
• Shareholders’ Agreements
• Partnership Agreements
• Confidentiality Agreements
• Commercial Office Leases
• Terms of Use for Websites
• Shared Purchase Agreements

We’re not just business lawyers; we’re partners in your success, helping you avoid costly mistakes and ensuring that your legal interests are protected at every step. From incorporating your business to preparing for a sale or handling disputes, our small business lawyers in Vancouver are equipped to manage your legal matters efficiently.