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Canadian opening a Wyoming Corp operating in Arizona hiring 1099 workers

Asked by: Yan Ohayon - 11 June, 2012 Hi Robert,
Thank you for taking the time to answer our questions. You can understand how invaluable this is to some people looking to setup a business over US borders.

I am a Canadian citizen who will be starting a tutoring school in Arizona State. The school operates once or twice per semester in temporary locations (conference halls) and hires students for one time course work (contractual workers on 1099).

They work teaching the courses for 8-24 hours per weekend two separate times per semester and get paid in one lump sump for this.

I would like to incorporate in Wyoming and conduct my business remotely as a Canadian citizen in Arizona. Would this be possible?
Answered by: Robert Kowalski - 12 June, 2012 Dear Yan,

If the school would physically operate in Arizona it seems to me that registering in Wyoming would not really be the best solution. One could argue that since you won't have W2 employees or any physical location in Arizona you don't really create any solid "nexus" with that state, but it will always be a questionable position, given the amount of expenses and activity your business would have in Arizona.

In other words, it might be better for you to incorporate the school directly in Arizona. I would however advise you to consult an attorney before making decision of that kind.


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