Speaker Tony Redpath. Part of the CIBC Presents Entrepreneurship 101 lecture series. Read more and watch the video here: http://www.marsdd.com/Events/Event-Calendar/Ent101/2008/entrepreneurship-types-10292008.html
* 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 CIBC Presents Entrepreneurship 101 lecture series. Read more and watch the video here: http://www.marsdd.com/Events/Event-Calendar/Ent101/2008/entrepreneurship-types-10292008.html
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Basic Nuts and Bolts of Starting a Company
1.
2. `
Nuts and Bolts of Starting
a Business
Presented by:
Tony Redpath
Vice President, Partner Programs
MaRS Discovery District
29 October 2008
Slide 2
MaRS
3. Basic Premise:
When you start a business you have to fit into
an existing ecosystem.
Thismeans establishing numerous links with
different groups:
Customers
Suppliers / Providers
Government
Regulatory bodies
Trade Associations
Slide 3
MaRS
4. Your Ecosystem
Your You Your
Suppliers Inc. Customers
Slide 4
MaRS
5. Getting Incorporated
Two choices:
Federal incorporation
Canada Business website
http://www.canadabusiness.ca/gol/cbec/site.nsf/en/index.html
Canada Business Corporations Act
http://corporationscanada.ic.gc.ca/epic/internet/incd-dgc.nsf/en/
h_cs01914e.html
Slide 5
MaRS
6. Getting Incorporated (cont.)
Two choices:
Provincial incorporation
Service Ontario website
http://www.gov.on.ca/ont/portal/!ut/p/.cmd/cs/.ce/7_0_A/.s/
7_0_252/_s.7_0_A/7_0_252/_l/en?docid=STEL01_033449
Business Corporations Act
http://www.gov.on.ca/ont/portal/!ut/p/.cmd/cs/.ce/7_0_A/.s/
7_0_252/_s.7_0_A/7_0_252/_l/en?docid=STEL02_163189
Slide 6
MaRS
7. Getting Incorporated (cont.)
A third choice – for the future:
Delaware incorporation
Needed to attract US investors
Slide 7
MaRS
8. The Tax Man Cometh ….
Regardless of where you are incorporated, you
will have to register your company with a
variety of tax collectors:
Federal Corporate Tax
Provincial Corporate Tax
GST/PST
Slide 8
MaRS
9. 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
Ballpark
cost to hire an accountant / lawyer to
handle all the above paperwork is $800 - $1500
Slide 9
MaRS
10. Your Ecosystem
Federal and
Provincial Govt.
Your You Your
Suppliers Inc. Customers
Accountant
Slide 10
MaRS
11. Do you have co-founders?
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 11
MaRS
12. Your Ecosystem
Federal and
Provincial Govt.
Your You Your
Suppliers Inc. Customers
Lawyer Accountant
Slide 12
MaRS
13. 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)
http://www.wsib.on.ca/wsib/wsibsite.nsf/Public/EmployerRegisterWSIB
Slide 13
MaRS
14. Your Ecosystem
Federal and
WSIB
Provincial Govt.
Your You Your
Suppliers Inc. Customers
Lawyer Accountant
Slide 14
MaRS
15. Company Name Registration
Selecting and registering your business name
Canada Business website
http://bsa.canadabusiness.ca/gol/bsa/site.nsf/en/su06937.html
Trademarks, patents
Canadian Intellectual Property Office website
http://www.cipo.ic.gc.ca/epic/site/cipointernet-internetopic.nsf/en/wr00034e.html
Slide 15
MaRS
16. Are you doing research and
development?
Scientific Research and Experimental Development tax
credits (SREDs)
A major advantage for Canadian companies
http://www.cra-arc.gc.ca/sred/
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
17. Networking
You need to establish a commercial network
(just as you had an academic network)
Trade Associations
Trade Shows
Scientific Conferences
Regulatory Bodies
Your Bank
Regional networking organizations (e.g. MaRS)
Professional bodies (e.g. PEO)
Slide 17
MaRS
18. Your Ecosystem
Federal and
WSIB
Provincial Govt.
Your You Your
Suppliers Inc. Customers
Bank Lawyer Accountant Trade associations
Trade Shows
Conferences
Regional Networks
Regulatory Bodies
Slide 18
MaRS
19. Some Don’t’s …
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 mates – you are not building a
research lab, you are building a company
Slide 19
MaRS