A New Year Is the Perfect Time to Review Your Business Legally
January is a natural reset. As Ottawa business owners set goals, review budgets, and plan for growth, there’s one critical step that often gets overlooked: a legal checkup.
At the start of the year, we regularly see businesses operating with outdated contracts, incomplete corporate records, or legal gaps that quietly increase risk. These issues don’t always cause immediate problems — but when they do, they can be costly and disruptive.
That’s why we encourage Ottawa entrepreneurs to begin the year with a proactive legal review. It’s not about fixing problems after they arise — it’s about preventing them before they impact your business.
What Is a Legal Checkup for a Business?
A legal checkup is a structured review of your company’s core legal documents, compliance obligations, and risk areas. It ensures your business is legally aligned with how it actually operates today — not how it looked years ago.
For Ottawa businesses, this review is especially important due to evolving regulations, employment standards, and commercial real estate considerations.
Our goal is simple:
start the year with clarity, protection, and confidence.
1. Reviewing Your Business Structure
The first thing we look at is whether your business structure still makes sense.
Many businesses begin as sole proprietorships or partnerships and grow without revisiting that initial setup. Others incorporate but fail to maintain proper records.
We assess:
- Whether incorporation still aligns with your growth and risk exposure
- Whether your ownership structure reflects reality
- Whether shareholders or partners are properly documented
- Whether your corporation is in good standing in Ontario
If your business has grown, taken on new risks, or changed direction, January is the ideal time to adjust your structure accordingly.
2. Corporate Records and Compliance
For incorporated Ottawa businesses, compliance isn’t optional — it’s essential.
During a legal checkup, we review:
- Corporate minute books
- Annual resolutions and filings
- Director and officer records
- Share registers and ownership documentation
Incomplete or outdated records can:
- Weaken liability protection
- Delay financing or sale opportunities
- Create issues during disputes or audits
Keeping your corporate records current protects both your business and your personal assets.
3. Contract Review: The Core of Every Legal Checkup
Contracts are at the heart of most business relationships — and also the source of many disputes.
In January, we recommend reviewing:
- Client and service agreements
- Supplier and vendor contracts
- Commercial leases
- Independent contractor agreements
- Partnership or shareholder agreements
We look for:
- Auto-renewal clauses you may have missed
- Unclear payment terms
- One-sided liability provisions
- Outdated or unenforceable clauses
- Missing termination rights
A clean contract review helps you avoid disputes and renegotiate terms before problems arise.
4. Employment and Contractor Compliance
If you have employees or contractors, your legal obligations under Ontario law are significant.
As part of a legal checkup, we review:
- Employment agreements
- Contractor classification
- Termination provisions
- Workplace policies
- ESA compliance
Misclassification or outdated agreements can expose your business to penalties, claims, and reputational damage. January is the best time to correct these issues before staffing changes occur later in the year.
5. Commercial Lease and Property Review
For businesses leasing or owning property in Ottawa, January is an ideal time to review occupancy arrangements.
We examine:
- Lease renewal deadlines
- Rent escalation clauses
- Maintenance and repair obligations
- Assignment and subletting rights
- Exit strategies
Many businesses miss opportunities to renegotiate or plan exits simply because deadlines go unnoticed.
6. Dispute Prevention and Risk Assessment
A legal checkup isn’t just about documents — it’s about identifying risks before they escalate.
We help businesses:
- Spot early warning signs of disputes
- Address recurring payment or performance issues
- Strengthen documentation
- Improve internal processes
Preventing disputes is always more cost-effective than resolving them later.
Why January Is the Best Time to Do This
January offers unique advantages:
- Contracts and budgets are being reviewed anyway
- Renewal periods are approaching
- Business goals are being set
- Issues can be addressed calmly, not reactively
Starting the year legally prepared gives you a strategic advantage.
Conclusion
A legal checkup is one of the smartest ways to start the year. It helps Ottawa businesses reduce risk, strengthen operations, and move forward with confidence.
Call to Action
If you want to start the year on solid legal footing, we’re here to help.
📞 Call us at 613-979-3572
📧 Email us at info@dl-pc.ca
Let’s make sure your business is protected, compliant, and ready for the year ahead.
