Use this Structure for your Operating Company

Good Structure for Early Stage Companies A common structure for businesses is to have the operating company (“Opco”) owned by a holding company (“Holdco”). One primary reason for this is to be able to remove excess cash from Opco without paying tax, via inter-company, tax-free dividends. The

New Intergenerational Transfer Rules

If you are looking to transition your business to your children or grandchildren in the near future, there is a tremendous opportunity to do so under the new intergenerational transfer rules contained in section 84.1 of the Income Tax Act (Canada) (the “ITA”).  In the simplest terms, where you

Corporate Starter Tips for US Companies Expanding into Canada

I have a growing number of US clients exploring the opportunities that the Canadian market has. In this blog I will provide some basic important information for US companies considering expansion into Canada. Incorporating a Canadian corporation is relatively straight forward. If you are

Corporate Amalgamations and Use of Corporate Losses

I recently had a client whose company (“PropertyCo”) had sold a property 2 weeks before making contact with me. The sale resulted in a relatively substantial amount of corporate tax. The client also had another company (“Opco”) with significant operating losses. The question was whether, by

A Simple Analogy to Understand an Asset vs. a Share Sale

A client recently asked me for some advice about a business opportunity which would involve stepping into an existing business to try to turn it profitable. His proposal was to work for several months in an attempt to turn around the business, in exchange for a certain percentage of equity in the

US Company Doing Business In Canada

It is a challenge to comply with one legal and tax system. Try TWO at the same time. Although costly, and more effort, as long as the two laws don’t contradict each other – things should be relatively simple. So, what happens when two different countries, jurisdictions, and treasuries are after the

What Type of Lawyer Should Draft Your Will?

If you have ever asked someone to refer you to a lawyer to draft your will, you were likely given the name of an “estate planning” lawyer, a “wills” lawyer or an “estates” lawyer.  Alternatively, you may have been given the name of a family lawyer or a real estate lawyer, who often draft wills for

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