Hi all,
We're two founders (based in US and Canada) and have decided to incorporate as a Delaware C-Corp.
We're trying to figure out the ownership structure since my co-founder is in Canada. We want to make it US investor-friendly, minimize taxes and legal/compliance/reporting burden.
There are two options as far as we can tell:
1) Canadian co-founder owns his shares as an individual
2) Canadian co-founder owns his shares through a Canadian holding corp
A Canadian attorney proposed to use a Canadian holding corp to minimize taxes but we're starting to run into issues like can we apply a vesting schedule to shares owned by a foreign legal entity, what if the Canadian corp ownership changes (will investors even want to invest in a company with such structure?), etc.
Anyone has any recommendations or can share experience for forming a C-Corp where one of the co-founders is in Canada?
