Embed Size (px)
Citation preview
• 7:00 pm Welcomes
• 7:05 pm Thank you’s
• 7:15 pm Keynote Selling into the U.S. – Taxes & IP
• 8:15 pm G2KYM’s
• 8:30 pm Mark Your Calendar
• 8:45 pm Networking
Agenda
Welcome To TheMEV Innovation Centre
A Dynamic Place to Work, Share Ideas and Grow Your Business
MEVInnovationCentre.ca
Connecting Minds - Igniting Ideas- Inspiring Innovation
Office Suites• Great for Small/
Growing Businesses• Affordable/Flexible
Lease Terms
Coworking Desks• Available Daily,
Monthly• Memberships
Available
Meetings and Events• Boardrooms – Hour/Day• Private Meeting Rooms• Networking /Receptions• Seminars/Workshops
MEV Innovation Centre
Business Support Services• Business Advice• Mentoring• Market Research• Access to Capital
Thank you’s
VinuthaShanmukharadhya
CoLab Executive Summary
Meetup 62 Video Montage
Thanks to Roderrick Reano of ReanoFilms.com for creating a Video Montage of Meetup 63
https://www.youtube.com/watch?v=Ovqca1pY84Q&feature=youtu.be
SoloP2P Facilitator
Alan Montgomery of ModTel Installations is a new key contributor: he’s taking over facilitation of Solopreneur Peer2Peer
Selling into the United StatesIP and Taxes
Agenda
• Taxes on Business Income
• Capital Gain Exemption on Small Business Shares
• Corporate Structures
• Intellectual Property
• U.S. Taxes
A Good Problem to Have!
The company is making money.
What do I do?
Taxes on Business Income
• The small business deduction reduces the corporate tax rate down to 15.5% for taxable income up to $500,000 (for active business activities)
• Must be shared among “associated” companies
Retain Income in the Business
• Retaining funds in the business allows you to earn a rate of return on a higher principal balance than if you bonus or dividend out the funds
• After-tax funds in a corporation is 84.5% vs. personal of 53.5% = difference of 31%
• Any investment income is taxed at 48% in the corporation but a portion of this tax is refundable later if a dividend is paid out of the corporation
Capital Gain Exemption on Small Business Shares
• This is an important tax break for business owners
• Allows for each shareholder to realize a gain up to $800,000 tax free = savings of $185,000
• Need to ensure that the shares qualify for the exemption
Capital Gain Exemption on Small Business Shares
Rules:• Shares must be of a Canadian controlled private small
business corporation
• At time of disposition, 90% of the corporation’s assets are directly used in active business carried on in Canada
• Shares were held for more than 24 months preceding disposition with 50% of the assets used in active business during that period
Capital Gain Exemption on Small Business Shares
• Need to ensure that the company does not have significant excess assets such as excessive cash or investments held in it
• Excess capital and investments are at risk from creditors
Problems?
• Company retains profits and invests within the corporation. Eventually the company won’t meet the tests for the capital gain exemption as investment assets build up
• Excess cash is held in company which is at risk to creditors
What can we do?
Holding Company
Dividend
Pay a dividend up to the holding company and invest the assets in the holding company
Still have a problem since the holding company doesn’t get a capital gain exemption
Operating Company
Holdco
Shareholder
What to Do?
• Use a Family Trust to own the operating company and have the holding company as a beneficiary of the Family Trust
• Allows you to pay a dividend up to the holding company on a tax-free basis for investment
• If the company is sold, the gain would occur at the Family Trust level
Family Trust Structure
• The beneficiaries of the Trust include family members and a corporate beneficiary
• Beneficiaries over the age of 18 can receive a dividend to split income
• Assuming no other sources of income, a dividend of $49,000 would be essentially tax-free
Family Trust Structure
• Provides ability to multiply the capital gain exemption over several beneficiaries. A typical family of four results in an overall capital gain exemption of $3,200,000
• Excess cash can be transferred to the corporate beneficiary without triggering additional tax on the dividend
Family Trust Structure
Operating Company
Family Trust
BeneficiariesTrustee
Dividend
Corporate Beneficiary
Problem?
• What about my intellectual property? Is it at risk?
What can we do?
IP Held in a Separate Corporation
Operating Company
Family Trust
BeneficiariesTrustee
Dividend
Corporate Beneficiary
IP
Servicescharge
Sales to U.S. Customers
• If you earn income from sales to the U.S., you should file a U.S. Corporate Tax Return
• If you don’t have a physical presence in the U.S., then it will likely qualify under the U.S.- Canada Tax Treaty and no taxes apply
• Protective filing
• Don’t charge HST to customer outside Canada
Sales to U.S. Customers
• If you have a physical presence in the U.S. (i.e. office, employees) then you will need to file a full U.S. Tax Return and pay tax to the IRS
• Need to determine effect of U.S. state taxes and possibly city taxes
Questions
Greg Clarke
(905) 633-6323
@GregClarkeCA
Announcements
SiliconHalton 2.0
Changes
• Recognizing Backers
• We need way more help– Greeter
– Contributors to own/run one Meetup in 2015
• Paid vs. Free in 2015
• Crowdfunding– 2015 Meetup on Crowdfunding
– Workshop series to actively run our 2015 Crowdfunding
• Business Directory - $250/year– Conceived at Meetup #3, Jan 2010
https://www.youtube.com/watch?v=eZc8qZrT8w0
– Sign up here: www.siliconhalton.com/business-directory
#G2KYM(Get to Know Your Member)
Key Contributor: Kimberly NealeJob Developer at Halton Region / Employment Halton@ImOnit4U
Focus
• patent drafting, filing, prosecution and
opinion work
• industrial design and trademark protection
Education
B.A.Sc., University of Toronto, 2000
LL.B., Queen's University, 2004
Qualifications
Admitted to the Ontario Bar, 2005
Registered Canadian Trademark Agent, 2006
Registered Canadian Patent Agent, 2009
Registered United States Patent Agent, 2009
Contact Us
bereskinparr.com | twitter.com/bereskinparr | linkedin.com/company/bereskin-&-parr
Matthew Graff, Partner B.A.Sc. (Matl. Eng.), LL.B.
[email protected] | 905.817.6107
ca.linkedin.com/in/matthewjgraff
Kyle Bissett, Co-Founder
Phone 905.334.9862Twitter @gradpotential
www.gradpotential.com
• Allowing employers to realize the full potential of graduating or recently graduated students
• Using 12 years of Hiring Simulation experience
• Working with Silicon Halton, I hope to be involved in discussions on the Hiring Process and how software can be used to aid it.
realize candidate’s potential by seeing them in action
Scoring Candidates
• Perception vs. Reality
Logical Decision Making
• Compare candidates
• See who sticks out
•
@gradpotential
Mark Your Calendars
Meetup #64 – Wearable Technology
Wearable tech in the health care industry & regulations
Presenter: Dr. Jayson Parker, Medical Biotechnology Analyst & Lecturer University of Toronto
When: Feb 10/15, 7pmWhere: O’Finns Irish Temper, Oakville
Women In Tech Peer2Peer #5
Topic: What would you do if you weren’t afraid?
• Feb 12, 2015, 11:30am-1pm
• Location: Panera Bread
220 North Service Road, Oakville
Key Contributors:
Lisa DenisFounder/President at Enrolink [email protected]
Kathryn LagdenVP Digital Strategy and IntegrationSchool Family [email protected]
BigData Peer2Peer
Topic: Big Data & Mobile Apps
• Thursday Jan 15, 6:30pm
• Trafalgar Ridge Montessori School 2379 Trafalgar Road, Oakville
• LinkedIn discussion: http://linkd.in/14vxZX2
• Register: http://bit.ly/1C38jMI
Key Contributor:
Andy WangSoftware EngineeerNull Pointer Software [email protected]
SoloPreneur Peer2Peer #42
• Thursday, Jan 15, 8:30 - 10am
• Topic: 2015 Objectives
• Location: Hampton Restaurant at the Quality Suites Hotel, Oakville (QEW/Bronte Rd)
Key Contributor
Alan Montgomery ModTel [email protected]
Open Floor
www.siliconhalton.comlinkedin/siliconhalton@siliconhalton
