Why Canadian Small Businesses Need This One Agreement

✍️By Debbie Balfour | WBN News | June 4, 2025 | Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.

Think your Canadian small business doesn’t need an operating agreement? Think again. Whether you’re launching a small startup or managing a multi-owner corporation, this one document could save you thousands—and maybe your entire company.

In Canada, particularly with limited liability corporations or partnerships, an operating agreement (or shareholder agreement) sets out the rules of the business. It covers decision-making protocols, ownership percentages, roles of each member, and conflict resolution procedures. Without one, provincial laws kick in by default, and those laws may not favour your business model or long-term goals.

What happens if a partner wants to leave or passes away? What if there’s a financial disagreement? Without a clear agreement, you're exposed to legal disputes, frozen assets, or even business dissolution.

Even sole proprietors or single-member corporations benefit. An operating agreement can support the separation between personal and business liability, critical if your company ever faces litigation.

Here’s where many small business owners get stuck: legal costs. Hiring a lawyer to draft a full agreement can cost thousands upfront. But there’s a better way.

Subscription-based legal services offer an affordable alternative. For a low monthly fee, you get access to a licensed Canadian lawyer who can draft, review, and customize your agreement, without the shocking bill. These services make ongoing legal support practical for small businesses, especially in the early stages when every dollar counts.

Bottom line:
Don’t leave your business vulnerable to assumptions and handshake deals. A clear, legally binding operating agreement is one of the smartest moves you can make, and with modern legal service subscriptions, it’s more accessible than ever.

Have any questions? Reach out to me.

Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
📍 Website: www.DebbieBalfour.com
📧 Email: Debbie@DebbieBalfour.com
🔗 LinkedIn: Debbie Balfour
▶️ YouTube Channel: youtube.com/@DebbieBalfour

TAGS: #Canadian Small Business #Legal Advice Canada #Operating Agreement #Startup Law #Subscription Legal Services #Business Protection #WBN News Langley #WBN News Abbotsford #WBN News Okanagan #Debbie Balfour