Cross-Border Considerations For Canadian Startups - October 2016

Many Canadian tech entrepreneurs would like to benefit from certain advantages of being a U.S.-based company. At the same time, there are considerable tax and funding incentives offered to startups operating in Canada.

In order to maximize the advantages of operating on both sides of Canada-U.S. border, there are some innovative strategies that companies should be aware of.For those Canadian founders considering placing one foot in Canada and one foot in the U.S., the following considerations may be helpful.

Why the U.S.? 

Frequently, Canadian entrepreneurs seek to set up a U.S.-based company early on. Some Canadian founders have reported that American institutional investors, venture capital firms and angel investors are more comfortable investing in early-stage tech companies that are governed under the laws of a U.S. state. Additionally, U.S.-based incubators and funding programs may require U.S. incorporation in order to access certain programs (e.g. Startup