The business attorneys at Sodagar & Company Law Corporation can effectively help you through a corporate restructuring.
Estate Freeze
Do you intend to sell your company in the near future? Or do you intend to transmit your business to your children in the coming years? If so, you should assess whether a freeze on your estate is a smart plan.
An estate freeze, or “Section 86” reorganization, compels you to swap your shares for fixed-value preferred shares. Additionally, new shareholders, such as your children or a family trust, would acquire common shares of the firm. To avoid a huge tax burden, your corporation may “freeze” the value of its shares by enacting an estate freeze.
We can help you write corporate documents and update your company’s minute book for a Section 86 structure. Together along with your tax advisers, we will guarantee that the transaction is tax-deferred.
Nontaxable Rollover
Importantly a “section 85” rollover is a business transaction in which capital property, such as real estate, is sold to a corporation tax-free. In return for shares of the company, the property is acquired. A section 85 transfer may be recommended as a tax-planning option by your accountant or tax expert.
This requires asset sale paperwork, new shares, a Canada Revenue Agency election form, and corporate record book changes.
When it comes to advising business owners who need the services of corporate attorneys, we are delighted to help. If you are a business owner in need of company law legal counsel, contact us here to arrange a consultation with one of our experienced attorneys.