[am3141]

This is simply not true. Canadian founders lose massive Canadian tax benefits by incorporating in the US. The only way out of further tax complications (and it’s not because of Canada, it’s just how international tax laws work) the founders have to permanently move to the US. Source: I have founded both Delaware and Canada federal co.

[compiledkoala]

I understand how SR&D works - I've filed for it several times.

My hot take: given the 1 year delay on receipt of funds and the fact that it has the biggest impact on small teams, if you are going to scale a VC backed startup as fast as you need to - SR&D won't be the reason you succeed. If you are not scaling fast enough to make it - SR&D won't save you.

If you stay in Canada and raise from Canadian VC's you'll get half the cash at half the valuation. The government makes that up to you in SR&D a year later.

Found in Canada because it's your home and you love it. That's the only real reason. And it's a good one.

[bryanlarsen]

Banks are generally happy to factor SR&D for you if you need to get your money faster