Determine your needs

Being self-employed

Starting a business is an exciting challenge, and can be a great source of satisfaction, if you prepare for it properly. If you choose to become an independent worker or the owner of a small business, you will have to invest heavily, in terms of both time and money. Make sure you have a good financial plan to help you ensure your financial health and that of your business, and as such, the success of your project.

To start off on the right foot, call on an expert – your financial services professional – who will help you draw up your financial plan. This is an important step to take before starting your business

Insurance advice

Take out life insurance	You should take out life insurance because: If your partner dies, life insurance will provide you with the liquid assets you will need to buy out his/her share of the business. If you die, life insurance will provide your estate (your descendants) with the funds they will need to pay income taxes and other fees related to your estate.
Plan for the consequences of an illness or a disability	Consider taking out critical illness insurance and disability insurance. If you become seriously ill or disabled, you will be able to: Continue assuming your business’ operating costs; Ensure its continuity in your absence.

Estate planning

Review your will	Your will is the most important element in estate planning. You will rest assured that your final wishes regarding your business are honoured if they are detailed in your will.
Facilitate the transfer of your business	To reduce income taxes payable at the time of your death, find out about the living (or intervivos) trust, which has effects during the life of the person who sets it up, and the testamentary trust, which becomes active when that person dies. Among other things, these trusts make it easier to transfer your business from one generation to the other and to ensure its continuity.

Legal aspects related to starting a business

Consult experts	There are several legal structures for a business, depending on the business’ sector of activity, its size and its perspective for growth. An expert in this field can help you determine which legal structure would be appropriate for your business.
Avoid disagreements with your business partners	Find out about partnership agreements. This type of agreement lets you set out the rights, responsibilities and powers of each partner, which can be very useful in the event of a misunderstanding between partners or a partner’s disability or death.