Slide 1 MaRS Follow or Tweet:#ent101
Basic Nuts and Bolts of Building a Business
Jan 22, 2015
In this session, we deal with the nuts and bolts of starting a company, including:
* How do you incorporate?
* What government agencies do you have to engage with (after all, they will want to tax all that money you are making)?
* How do you start off plugging yourself into your customer community?
Part of the MaRS CIBC Presents Entrepeneurship 101 lecture series: http://www.marsdd.com/ent101
* How do you incorporate?
* What government agencies do you have to engage with (after all, they will want to tax all that money you are making)?
* How do you start off plugging yourself into your customer community?
Part of the MaRS CIBC Presents Entrepeneurship 101 lecture series: http://www.marsdd.com/ent101
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Slide 1
MaRS Follow or Tweet:#ent101
Slide 2
MaRS
` Nuts and Bolts of Starting
a Business
Presented by:
Tony Redpath Jennifer R. White
Vice President, Partner Programs Social Entrepreneur in Residence
MaRS Discovery District MaRS Discovery District
Dan Bolger, CIBC
Business Banking Advisor, GTA North
October 28th, 2009
Slide 3
MaRS
Creating an Ecosystem…
When you start an enterprise, you have to work within an existing ecosystem while seeking to create your own relationship network and ecosystem… Customers
Suppliers / Providers
Government
Regulatory bodies
Trade Associations
Slide 4
MaRS
Your Ecosystem.. Just at the beginning…..
You Inc.
Your Suppliers
Your Customers
Slide 5
MaRS
What should be my first step? Incorporation
For Profit and Non Profit Organizations:
For Profit Incorporation
Federal incorporation
– Canada Business website
– Canada Business Corporations Act
Non Profit Organizations
Canada Non for Profit Corporations Act
Non for Profit Incorporators Handbook
Charitable Status
Slide 6
MaRS
Incorporation in Ontario
Provincial For Profit Incorporation Service Ontario website
Business Corporations Act
Provincial for Non Profit Organizations
CRA Website
Slide 7
MaRS
Incorporation in the US Moving South of the Border?
For Profit Options:
Delaware incorporation
US Investor Base
Non Profit Options
Guide Star
Filing Requirements – IRS
L3C Legal Structure
Slide 8
MaRS
After incorporation, taxes will follow ….
Regardless of incorporation jurisdiction, taxes are a requirement Federal Corporate Tax
Provincial Corporate Tax
GST/PST
Slide 9
MaRS
Rules of the Incorporation & Taxes Lesson number 1: Get Help!
“The incorporation process can be very complex. You may wish to obtain legal and tax advice to assist you with the preparation of the incorporation documents and shareholders' agreements.”
Canada Business website
Approximate cost to hire an accountant / lawyer to handle all the above paperwork is $800 - $1500
Slide 10
MaRS
Your Ecosystem The Expansion Continues
You Inc.
Your Suppliers
Your Customers
Federal and Provincial Govt.
Lawyer Accountant
Slide 11
MaRS
Post Incorporation.. Founders, partners & employees
You will need a shareholders agreement – it can be 1 page or 100 pages, but it must cover, at a minimum: What is the ownership split (at the start; sweat equity vs
salary)
How are decisions made
What are each person’s responsibilities
Assignment of Intellectual Property
There are many other issues that can be covered in a shareholders agreement (see Term Sheet lecture)
Legal advice is highly recommended
Slide 12
MaRS
Are you going to have employees?
More taxes – you need to remit payroll deductions for income tax, Employment Insurance, Canada Pension Plan (the good news is that when you get the other federal tax numbers, you will also be set up for payroll taxes)
You need to register with the Workplace Safety and Insurance Board (WSIB)
Slide 13
MaRS
Your Ecosystem
You Inc.
Your Suppliers
Your Customers
Federal and Provincial Govt.
Lawyer Accountant
WSIB
Slide 14
MaRS
Where should I register my enterprise name?
How do I register my enterprise name?
Canada Business website
How do I seek information about trademarks & patents?
Canadian Intellectual Property Office website
Slide 15
MaRS
Types of Organizations Research and Development
Scientific Research and Experimental Development tax credits (SREDs) A major advantage for Canadian companies
Claimants can apply for SR&ED investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts.
Generally, a Canadian-controlled private corporation (CCPC) can earn an investment tax credit (ITC) of 35% up to the first $2 million of qualified expenditures for SR&ED carried out in Canada
Scientific Audit and Financial Audit
To qualify for the SR&ED program, work must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, and incorporate a systematic investigation by qualified personnel.
Slide 16
MaRS
Your Ecosystem
You Inc.
Your Suppliers
Your Customers
Federal and Provincial Govt.
Lawyer Accountant
WSIB CRA
Slide 17
MaRS
Beginning to build your network Establish a commercial network that compliments your existing networks
Building Effective Relationships 101
Professional Organizations & Trade Associations
Be Strategic
Too many to count….
Why do I need to be there? Who do I need to meet?
Scientific Conferences
Trade Shows
Partners
Government Officials
Your Bank
Slide 18
MaRS
Your Ecosystem
You Inc.
Your Suppliers
Your Customers
Federal and Provincial Govt.
Lawyer Accountant
WSIB
Bank Trade associations Trade Shows Conferences
Regional Networks Regulatory Bodies
CRA
Slide 19
MaRS
Consider things NOT to do….
Don’t run out and commit to a big office with lots of fancy furniture – get the space that you need, shop at IKEA and grow your space as necessary
Don’t hire your relatives simply because they are available – get the team that you actually need
Don’t hire your lab, old college university friends mates UNLESS they can offer you something to build your organization
Related Documents
