COMPLEX CANADA / US INCORPORATION QUESTION

[bchoi]

I need some advice about incorporating a business:

To give you a little background, I'm currently in the process of setting up a management consulting firm that focuses on advising emerging market companies (specifically in China). I am a Canadian citizen working in New York on an H1B Visa (which expires in 1 month). My business partner is a US citizen. We've both been in New York for 5-6 years doing investment banking.

I want to know if anyone here can help us answer the following questions:

1) Where should my partner and I incorporate the business from a corporate and personal tax perspective (Canada, US, Cayman Islands, etc.) and what are the pros / cons for each jurisdiction?

2) If we decide to incorporate in the US, is Delaware the best place to get incorporated? In this case, how do taxes affect me personally given that most of the revenues are generated in China?

Any help answering these questions would be greatly appreciated.

Thanks,

bchoi

[Carson]

Your question is a multi jurisdictional tax and business question. It certainly isn't a simple question that should be answered on the internet.

Do yourself a favour and speak with a CPA or tax attorney at a large US firm with international connections. Be prepared to pay significant dollars to get decent advice.