Especially in your case, Gael, you desire to prematurely and ongoing legal advice for law, insurance and accounting. This could initially cost just a few thousand dollars, after which annually.
What is a holding company?
You can have a hold in Canada. This is only a nickname for “Holding Company”, an organization that has assets. In general, the assets include money and investments, but can contain other assets equivalent to real estate – or in your case sales machines and ATMs.
If your organization has real estate and conducts other business activities, it might probably be technically seen as a “operational company” or “OPCO” – in addition to Holding or Holdco.
Some firms will entertain two separate firms: an OPCO and a Holdco. If the OPCO could have a risk that may lead to a lawsuit, for instance, keeping assets in a separate Holdco might be useful to guard it.
If an OPCO might be sold someday, it could be needed that Holdco’s assets for lifelong capital gains might be separated and your organization savings and other assets can keep individually.
In your case, it may very well be easier to maintain every part in an organization, but there are benefits and downsides. And in fact you need to obtain legal advice.
Use of shareholders
It would even be advisable to make use of a lawyer to develop a shareholder agreement. If you might have your personal company otherwise you and your spouse have an organization, this will likely not be so vital. However, as soon as you might have other shareholders, especially friends or business partners, a shareholder agreement is significant.
This agreement can take care of situations, as if certainly one of the shareholders is hindered, is divorced and even dies. It can take care of situations wherein there are disagreements between the shareholders. What if some shareholders need to perform a renovation and wish to sell others the property?
