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That's true but the regulations and taxes on corporate entities are quite significant in Canada once it gets past start-up size. For an office of a few hundred
by MichaelZuo 3y ago
That's true but the regulations and taxes on corporate entities are quite significant in Canada once it gets past start-up size.
For an office of a few hundred people, large enough to not qualify for most of the cost and paperwork reducing programs, it is likely not nearly as clear-cut.
- ttul 3y agoI’m not sure what these regulations and taxes are that you’re talking about. Have you looked at Alberta? It’s the Texas of Canada. Extremely lightweight corporate regulation and low taxes. Corporate income tax on the first $500,000 of income is just 11%. On the rest it is 23%. The US federal corporate tax rate is 21%, after which states impose a variety of taxes. California adds 8.84%. Texas and Washington tax gross receipts rather than net income, so it’s hard to make a direct comparison. But overall, corporate taxes in Canada are considered low by international standards. As for business regulation, the reality for a tech business is that you rarely cross any regulatory boundaries. Employment law is straightforward. You can fire people easily. There aren’t tons of hidden costs. A little bit is spent on healthcare (1.5% in BC, zero in most other provinces). When I hear from American colleagues they complain of red tape more than my friends in Canada do.
- MichaelZuo 3y agoYou chose the jurisdiction with the least regulatory burden out of all 10 provinces, so you likely already know the differences. Why ask me?