Canadian Startup and Video Game Law Blog
Startup and video game law, from a Canadian and U.S. perspective
Categories
Why we don’t Incorporate Federally
Prospective clients often ask to incorporate “federally” or that they want a “Canadian incorporated” company. In most cases we recommend a provincial incorporation instead – here’s why: 1. Federal Falsehoods At the start, it’s critical to dispel federal incorporation falsehoods: First, federal incorporation does not allow the company to operate Canada-wide. Like a provincially incorporated...
You Don’t Need a US Company to Raise from the US
We’ve attended a number of presentations lately where Canadian founders are told that they MUST be a US company to raise money from US investors. This advice is patently false; Canadian startups raise from US investors all the time and investors generally don’t care that a prospective portfolio company is Canadian. 1. Where does this...
Raising Capital from U.S. Investors
Many Canadian companies raise funds in cross-border financings, with most rounds including at least 1 U.S. resident investor (if not a U.S. lead investor). If your Canadian startup is raising funds from U.S. investors, you will need to keep the following in mind: 1. Value Your Startup in USD All Canadian startups should value themselves...
Moving to Canada
As a cross-border law firm, we focus on establishing Canadian companies for US (and other foreign) companies; often these cross-border structures are driven by remote teams and/or a desire to utilize certain Canadian tax credits. Our aim with this post is to detail the most common cross-border structure we create for our US clients (especially...