Three To Do’s for Small Business Owners

This weeks Kahane Law legal minute focuses on businesses and small business owners. Small business owners often have only them selves to promote and maintain their business.

An enduring pow of attorney allows a small business owner to select someone to manage his or her affairs/assets (including the business)if that small business owner becomes mentally incapable of doing so him or her self. Without someone to step in should that happen, no one will be able to sign cheques to pay employees, suppliers, fulfill contract, or any other situation that required decision or signed documents. Small business owners often do not have a backup person to rely on.

We also focus on the importance to small business owners of maintaining their minute books. Not only can they face large costs of bringing them current if they are not maintained, but the entire corporation could be struck from the corporate registry.

Lastly, a small business owner should look at having a law firm or other professional be the registered office of the small business. By doing so, in the event that the small business owner is sued, the registered office can respond appropriately. If the small business owner has his other home as the registered office and forgets to change that office on a move or goes on a vacation, anyone who sues the company and serves the claim on the small business owners’ home, may be able to note them in default for failing to respond, even before the small business owner even knows that he or she has been sued.

The cost of these solutions is relatively low and the cost of not following these suggestions can be very high. By taking the time now to prevent problems in the future, a small business owner can help protect their valuable asset.

Here is a link to our video on this topic: