When you least expect it, legal issues can throw a wrench into your business. Mitigate the risks and get support when it’s time to take action. Here are some potential legal pitfalls and helpful resources for you.

Business Structure

Set your business up for success from the start.

Sole Proprietorship: This is the simplest for accounting at tax time AND you make all the decisions. The downside is you will be held personally liable for debts and damages.

Partnership: Two or more people share the decisions and the profits. You should have a highly-detailed written Partnership Agreement that will clarify the liabilities, obligations and rights of each partner. 

Corporation: A separate legal entity that protects the owner(s) from personal liability for debts and damages. Though it’s more costly from an accounting and taxation perspective.

For more about business operations, check out our year-end review article from last month.

Broken Contracts

Always have customers sign a contract. There are tons of free templates available online specifically for roofers. Just do a quick search and download one or compile one of your own using the information you find. If a customer defaults on a payment, you can put in a claim for up to $35,000 through Small Claims Court.

Leases

If your business leases a property, a detailed agreement should clearly cover areas of damage, repairs, improvements, deposits, additional fees, subleasing, and fees related to late rent payments. Whether you rent or own, make sure you have enough of the right type of insurance to cover any potential costly event.

Licenses / Permits

The type of license you need depends on where you operate your business and where you do the work. Check with each municipality to ensure you have the proper licenses. The need for permits is also location specific. Always familiarize yourself with local bylaws to avoid unnecessary fines. 

Insurance

We can’t stress enough the importance of insurance. Commercial General Liability Insurance and Workers Compensation Insurance (WSIB) are the two big ones. Your vehicles need commercial auto insurance and it’s a good idea to insure your equipment, too. Get the best advice from an insurance professional you trust.

Marketing

If you are doing emailing marketing, familiarize yourself with the CASL law. Someone may try to use your business name or phone number to steal your customers. In that case, you may need some legal advice. Here are some great resources to keep in your phone book just in case you run into legal issues.

Legal Support

Pro Bono Law Ontario offers small businesses 30 minutes of free legal advice. Call 1-855-255-7256 or visit their website.
National Canadian Lawyers’ Initiative has law students and recently retired legal professionals available to support small businesses.
The Ontario government has loads of resources for small business owners, too.