Seeking advice on acquiring Canadian company

searcher profile

December 03, 2024

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Boston, MA, USA

Hi all,

Our team is based in the US and currently looking to acquire a company in Ontario, Canada. Would love to connect with anyone who has done similar transactions for your advise on legal structure, any tax impact/benefit by setting up the NewCo in Canada or US. Also would love any recommendation on attorney but give the deal size is so small, we are probably looking to retain someone who's open to hourly work.

Thank you for the help in advance!

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commentor profile
Reply by a professional
from University of Miami in New York, NY, USA
Thank you ^redacted‌ for the tag! Sophia - my firm has done quite a few cross border deals between the U.S. and Canada. I’d be happy to discuss your transaction, Feel free to book a time with me:

https://calendly.com/petigara-law-group/meeting-with-vishal-petigara

looking forward to speaking.

Vish

Vishal S. Petigara, Esq. Klintworth & Rozenblat, LLP Office: +###-###-#### , ext###-###-#### Mob: +###-###-#### Email: redacted http://www.kandrip.com/
commentor profile
Reply by an intermediary
in Toronto, ON, Canada
I think an important thing to keep in mind is the lifetime capital gains exemptions for sellers of qualified Canadian businesses - and what the requirements are to remain onside of that. For small to medium businesses this will be a big consideration - it will give the founder the first 1.5M tax free (or $1.25M?) - and some will have structured their ownership with their spouse and possibly children to multiply that.

This saves them 33% in capital gains taxes for the total exemption - it only applies to share sales and has some other requirements.
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