US citizen starting a business in Canada

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niata
Posts: 1
Joined: Tue Sep 09, 2014 11:42 am

US citizen starting a business in Canada

Post by niata »

I am married to a citizen of Canada living in the US...I have my business LLC in the us and I want to open a bricks and mortar business in Canada...I will work there part of the time and part time in the US. What is the best structure to be able to bring profits/dividends back to the US...How do I bring a US employee to work at the canada store?
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

YOu are a USC owner of a LLC in US already engaghed in commerce in teh US now wanting to open a business in Canada. The LLC can open a business in Canada but you still have to get tax BN number, HST GST sales tax numer and payroll RP number in Canada. The LLC will report teh income it earns altogether and allocate it to you as the member just like it does now. In Canada since you are going to open up shop there you will simply report in a T2 corp tax return the CND portion of the profits these profits will now be allocated to you as a dividend then you can claim the foreing tax you paid in this income against your personal tax, but this is a recording nightmare how do you seperate the income on your 1040 allocated to you by the LLC between Canada and the US.

your best bet is to open a seperate company in Canada to handle the CND tax issues then you report this income on your 1040 . A canadian corp will be best for liab protection but since you will own it a lot of US filiongs will need to be done but its not too complicted and income paid to you will be taxed in the US and with tax paid to canada since you are a non resident.
JG
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