Particularly in your case, Gael, I believe you’d need correct authorized, insurance coverage and accounting recommendation up-front and ongoing. This might value just a few thousand {dollars} initially, in addition to yearly thereafter. 

What’s a holding firm?

In Canada, you’ll be able to have a holdco. That is only a nickname for “holding firm,” which is an organization that owns belongings. Typically, the belongings embrace money and investments, however they will embrace different belongings like actual property—or, in your case, merchandising machines and ATMs. 

In case your company will personal actual property in addition to keep it up different enterprise actions, it might technically be thought of an “working firm”—or “opco”—in addition to a holding firm or holdco. 

Some companies will keep two separate companies: an opco and a holdco. If the opco may have danger that might end in a lawsuit, for instance, holding belongings in a separate holdco could make sense to maintain them protected. 

If an opco could also be bought sometime, maintaining holdco belongings separate could also be crucial in an effort to qualify for the lifetime capital gains exemption and maintain your company financial savings and different belongings separate. 

In your case, it is likely to be easier to maintain the whole lot in a single company, however there are execs and cons. And, after all, it is best to search authorized recommendation. 

Use of shareholder agreements

It might even be advisable to make use of a lawyer to develop a shareholder settlement. When you’ve got your personal company, otherwise you and your partner personal an organization, this might not be as necessary. However upon getting different shareholders, particularly pals or enterprise companions, a shareholder settlement is necessary. 

This settlement can take care of conditions like if one of many shareholders turns into disabled, will get divorced and even dies. It may take care of conditions the place there are disagreements between shareholders. Within the case of your property, what if some shareholders wish to do a renovation and others wish to promote the property?