Starting up a new business in Canada can be tough sledding. It’s a challenge anywhere, really, but in Canada there are even more obstacles. Unlike their southern counterparts, Canadian businesses encounter many roadblocks in the crowdfunding game. In the US, this form of funding has catapulted businesses, otherwise not able to make their vision work, into a financial position to compete – all from the help of strangers. In Canada, businesses must find alternate ways to source out funding, and one of the biggest pushes comes from government tax credits and benefits.
It was interesting to note, albeit not surprising, that when the PROFIT Hot 50 Growth Fuel list was released in mid-2012, these SR&ED stats stood out:
If a new business is involved with innovation and R & D, they may be eligible for the Scientific Research & Experimental Development (SR&ED) program. Wages, materials and overhead can all be claimed, but be aware that capital expenditures are being phased out next year.
SR&ED tax credits are a great way to offset operational costs, and since the funds are either credits or cash, a company can easily put financing towards their next project to allow them to remain profitable. To see if your company qualifies for SR&ED, take the BeneFACT SR&ED Health Test.
In addition to SR&ED, there are a few other funding options you may want to take a look at. These include:
It’s hard enough to keep the doors open as a startup business. There are a variety of programs available to help Canadian businesses financially – you just have to know where to look.