Clients often ask us about crowdfunding, particularly over the last few years as campaigns on portals such as Kickstarter and Indiegogo generate ever-increased buzz.
Until very recently, businesses have not generally been able to offer equity in a crowdfunding campaign. On and effective May 14, 2015, BC – along with Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia – adopted new rules that now allow for the sale of certain types of securities through an online funding portal. Chris and I recently wrote about this here.
This recent change creates exciting new fundraising opportunities for craft breweries and other small businesses, and adds to other programs available in BC, such as the “eligible business corporation” tax credit, which provides individual investors with a 30% refundable tax credit on the value of their investment, up to an annual maximum tax credit of $60,000. As with all things, certain restrictions and requirements apply, and we’re more than happy to help you out.