• 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

Structured Ideation Toolbox Meetup 61 – Nov 2014

Rami Tabbah, Ergonaute Consulting@Ergonauteblog.ergonaute.net

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

gclarke@sbpartners.ca

@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.

mgraff@bereskinparr.com | 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 Inc.lisa.denis@enrolink.com

Kathryn LagdenVP Digital Strategy and IntegrationSchool Family Mediakathrynlagden@gmail.com

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 Inc.msz006c1a@gmail.com

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 Installationsalan@modtel.ca

Open Floor

www.siliconhalton.comlinkedin/siliconhalton@siliconhalton