Frequently Asked Questions
Got questions? We’ve got answers.
Our goal is to make the legal process as clear and straightforward as possible. Below are answers to some common questions we receive.
If your question isn't here, please don't hesitate to book a call or message us.
General
Q: What makes Diverge Legal different from a traditional law firm?
A: We built Diverge Legal specifically for the modern creative and tech economy. Forget the old-school model. We are a virtual firm, which means we're flexible, accessible, and tech-savvy. We prioritize clear communication (less legal jargon!), transparent pricing with options like flat fees, and acting as true partners invested in your success.
Q: How does a virtual law firm actually work?
A: It works just like a traditional firm, but more efficiently. We use secure technology to communicate and manage everything online. We meet with clients via video conference, share documents through a secure client portal, and handle signings electronically. This model cuts down on overhead and saves you time and money, allowing us to serve clients across Ontario and Canada without requiring you to travel to an office.
Q: Are you a real law firm?
A: Yes, absolutely. Diverge Legal is a fully licensed and insured law firm operating in Ontario, Canada. Our founder is a lawyer in good standing with the Law Society of Ontario. We adhere to the same professional standards, ethics, and confidentiality rules as any traditional law firm.
Q: What jurisdictions do you serve?
A: We are based in Toronto, Ontario. For legal matters that fall under provincial jurisdiction, such as incorporation and contract law, we serve all of Ontario. For federal matters like trademarks and copyright, we can serve clients all across Canada.
Q: Are legal fees tax-deductible for my business?
A: In many cases, yes. Legal fees are deductible when they are directly related to operating your business or earning business income. Examples include contract drafting and review, intellectual property protection, compliance and regulatory advice, resolving business disputes, and legal support during a CRA audit.
Q: How do your fees work?
A: We believe in accessible legal help and transparent pricing. Depending on the project, we offer flat fees (e.g., for a trademark application or contract review), flexible hourly rates, and customized packages. We will always discuss the best fee structure for your situation and provide a clear cost estimate during our initial consultation.
Q: What is the first step to getting legal help?
A: Getting started is simple. The first step is to book a complimentary introductory call or fill out our quick inquiry form. We’ll have a brief, no-obligation chat to understand your situation, see if we're the right fit to help, and outline potential next steps and costs.
Businesses &
Entrepreneurs
Q: When is the right time to incorporate my business?
A: While there's no single "right time," you should strongly consider incorporating when you start earning significant revenue, plan to hire employees, want to seek investment, or wish to protect your personal assets from business liabilities. Incorporation creates a separate legal entity, which is a foundational step for growth and protection.
Q: What's the difference between a provincial (Ontario) and federal incorporation?
A: A provincial (Ontario) incorporation gives you business name protection only within Ontario and is generally simpler and less expensive to set up. A federal incorporation gives you name protection across all of Canada, which can be ideal for businesses planning to operate nationwide. We can advise on the best structure for your specific business goals.
Q: I have a Business Number (BN) from the CRA. Does that mean I'm incorporated?
A: That’s a great question, and it's a very common point of confusion. The short answer is no. A Business Number (BN) from the Canada Revenue Agency (CRA) is a tax identification number used for federal government accounts like GST/HST, payroll, and corporate income tax. All business structures—including sole proprietorships and partnerships—can have a BN.
Incorporation, on the other hand, is a separate, legal process done either provincially (with the Ontario government) or federally. This process is what creates a corporation, which is a distinct legal entity from you, the owner. This separation is what provides personal liability protection and other benefits.
Think of it this way: a corporation must have a Business Number, but simply having a Business Number doesn't make your business a corporation. If you're currently operating as a sole proprietor with a BN and want the legal advantages of being incorporated, we can guide you through that formal process.
Q: Do I need a trademark for my brand name?
A: If you want to stop others from copying your name or logo, yes. A trademark gives you exclusive rights.
Q: I registered my business name. Does that mean I have a trademark?
A: No, and this is a common point of confusion. Registering a business name with the government simply gives you the right to operate under that name. A registered trademark provides much stronger, exclusive rights to use that name, logo, or slogan in connection with your goods and services across Canada, and stops others from using something confusingly similar.
Q: I'm starting a business with a partner. Do we really need an agreement?
A: Yes, 100%. A Shareholders' Agreement (for corporations) or a Partnership Agreement is like a "business prenup." It's one of the most important documents you can create. It outlines ownership, roles and responsibilities, how decisions are made, and what happens if a founder wants to leave, dies, or you have a major disagreement. It can save you immense time, money, and stress down the road.
Q: What are some essential legal documents every new business needs?
A: Beyond incorporation documents and a shareholders' agreement, most businesses should have:
A solid Client Service Agreement or Master Service Agreement to use with customers.
Proper Website Terms of Use and a Privacy Policy (especially important under Canadian law).
Independent Contractor Agreements for any freelancers you hire.
Content
Creators
Q: I just post online. Why do I need a lawyer?
A: As your audience and business grow, so do the risks and opportunities. A lawyer helps you navigate brand deals, protect your content from being stolen, avoid legal trouble with advertising standards, and turn your creative passion into a sustainable business. We help you proactively manage the legal side so you can focus on creating.
Q: What's the most important contract for an influencer?
A: The brand sponsorship or collaboration agreement is critical. A proper agreement clearly defines your deliverables, payment terms, content usage rights (how long and where the brand can use your content), exclusivity, and disclosure requirements. Signing a brand's template without review can lead to unfair terms and future headaches.
Q: Someone used my video/photo without permission. What can I do?
A: This is likely a copyright infringement issue. In Canada, you automatically have copyright in the original content you create. The first step is often to send a formal takedown notice to the person or platform who is using your work. We can help you draft and send these notices and advise you on further steps if the issue isn't resolved.
Q: What is the difference between copyright and trademark?
A: Simply put, copyright protects your creative works (photos, videos, music, blog posts). Trademark protects your brand identity (your channel name, logo, catchphrase). Both are crucial forms of intellectual property (IP) that we can help you register and protect.
Q: Do I really need to disclose sponsored posts?
A: Yes. In Canada, Ad Standards and the Competition Bureau require that you clearly disclose any material connection you have with a brand you're promoting. This is typically done using hashtags like #ad or #sponsored. Failing to do so can result in penalties and a loss of trust with your audience. We can advise you on the specific disclosure requirements.
Q: Should I incorporate my influencer business?
A: As your income grows, incorporating can be a smart move. It provides liability protection (separating your personal assets from your business debts), potential tax advantages, and adds a layer of professionalism. We can discuss whether incorporating is the right step for you at your current stage of business.
Disclaimer: The information on this page is for informational purposes only and does not constitute legal advice. Please consult with a lawyer for advice on your specific situation.
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