Dissolve Canadian corporation before moving to the US?

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robust
Posts: 3
Joined: Wed Jul 15, 2020 7:59 pm

Dissolve Canadian corporation before moving to the US?

Post by robust » Wed Jul 15, 2020 8:18 pm

I'm moving to the US in the next few months and I'm the sole owner of an IT consulting CCPC with under $400k in assets/earnings. I was advised to cash out all my assets through dividends prior to leaving the country to avoid a departure tax. If I were to do that, should I consider dissolving my corporation as well? I plan to return to Canada as a dual citizen perhaps in a few years to re-establish operations of my company, but think it might be better to set up a LLC in the US instead. Look forward to hearing your thoughts.

calvin_g
Posts: 23
Joined: Fri Dec 02, 2005 12:17 am

Re: Dissolve Canadian corporation before moving to the US?

Post by calvin_g » Thu Jul 16, 2020 1:40 pm

The compliance requirements to file proper paperwork for owner of foreign business is quite complex and failure to file them hefty penalties. You may want to hire an account to advise how much is cost to file those paperwork every year.

nelsona
Posts: 16452
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dissolve Canadian corporation before moving to the US?

Post by nelsona » Fri Jul 17, 2020 6:39 pm

Yes, it usually best to dissolve if there is no need for the corp while outside US. The income should be taken before going to US, as once in US, the income would be taxable in US, and there would not necessarily be a tax credit available for the dividend taken (and taxed) in canada.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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