Yeah, I was thinking that whatever you do, don't skimp on getting the appropriate expertise and planning before starting. The risks of this could be potentially life ruining not just for you, but others as well.
Honestly, this is one I don't know. I agree to perhaps start with a BC POV where the operations are.
If it were me, I'd spend at least $2.5-10K to do some of this initial planning, due diligence etc. Consider it as the cost to do the foundation of your venture correctly so the whole thing doesn't topple at an inopportune time or rot from the inside out from an issue that could have been avoided. It's a lot of money to spend up front, but it could pay back its value many, many time.
You situation has and is not limited to minor/major considerations for provincial cross border differences and activities, GST/PST stuff, partnership/joint venture/corporate differences, contractor vs employee, legal and environmental law, ITA/Business corporation act limited liability/corporate veil considerations/differences, existing structures to address, ongoing uncertainties of other future activities and situations you want to make sure your structure can address/not be vulnerable to etc. Have a good idea/structure and don't skimp on record keeping.
This is not a simple situation at all IMO. I'd consider it a situation where you may have hundreds of ways to potentially and suddenly lose you thousands of dollars and not just at an accounting/tax level. Spend a bunch of those thousands up front to avoid or have a plan to minimize the effects of those potential and unknown risks.
Basically, you need to know how this could fail. If it does fail, where and how badly can it potentially fail? You don't want to put yourself in a situation if it does fail, that you're so screwed that you'd basically never have a chance to try again. See if you can quantify and project the potential gain/profit from this vs the potential losses/financial risks from this to see if it's worth it. If you can absorb up to a 3-5x for those potential losses and financial risks and have a comfortable plan for addressing them, then I think you can proceed forward. If you're sitting there without a number and just assuming you can probably figure it out, then I highly recommend you do not proceed, go back to the drawing board, get those details and understand it.
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Originally Posted by TSXCman
Both mines are permitted and operating. One for a month, one for 2 years.
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TBH, this potentially means it's scarier, rather than safer. If it's a surefire thing, they can do it themselves or financiers are lining up to give them money. They wouldn't have to bring on other partners and owners and sharing that profit. Bringing others on to share risk is very common. No one hands out easy money.
The fact you are not moving/not providing as much on ground insight is actually more scary IMO than helpful. Your distance and lesser hands on involvement might not see the cracks in the foundations before it's far too late.
Unless you have all the expertise to make the potential risks basically evaporate (rare), you should be considering partnering in something like this is more difficult rather than easier than starting from scratch.
LF: Small Corporation and Business Structure Advice
