Canada is a great place for a startup except VCs - if u r planning to get VC involved then u might have a tough time ... u may certainly get the meeting appointment but not the funds. Also angel funding is minimum. I don't know what kind of corporation u need to form (compared to Delaware C/S corp) but it may not be as advantageous as Delaware corp. Legal and tax laws are very straight forward. Proximity to USA will certainly help but dont know whether VCs from US would be interested in canadian firm ... if u r planning to hire hackers then u can find best brains here.