People sometimes want to register in other jurisdictions for reasons such as:
- (1) minimum director requirements;
- (2) favorable corporate taxes;
- (3) employer or corporate incentives for hiring locally, among others.
This article Canada: The “Delaware - Canco Straddle” For Canadian Tech Start-Ups explores the benefits to Canadian entrepreneurs of using both Canadian and American based corporations. The author explains that Canadian entrepreneurs earn many tax benefits from incorporating within certain provinces.
At the same time, entrepreneurs can utilize a sister corporation in Delaware to take advantage of greater tax benefits in the United States, and have greater success attracting American investors who are more comfortable with Delaware law.
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