Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            

Running an online business from Canada

Asked by: arlene - 6 April, 2011
I am a Canadian doing an online (virtual) real estate investing business where I match buyers and sellers and take a fee for that service. Do I need a Tax number, do I need to set up US LLC or can I run it from my Canadian company? If i need to setup us company do I need a us bank account or can I use paypal or wire service? thx
Answered by: Robert Kowalski - 10 April, 2011
Dear Arlene,

Technically, you do not need to form an American company to continue doing your business. Although you should register your Canadian company as a foreign entity in the state where you do most of your business in the U.S. I would definitely talk to an American accountant about this as well, as I do not know the tax implications of a Canadian company doing business in the U.S.

It does make sense for you to register a U.S. company, though, an LLC or an S-Corporation. This will give your customers a piece of mind that they are dealing with a domestic company, and will also make the tax situation a little simple, I believe. You do not need to have a social security number to form a company in the U.S. and you can even have it wholly owned by your Canadian corporation.

As for the bank account, U.S. companies typically have a bank account to deal with the everyday payments and invoices, but if PayPal is sufficient for you, then there is no actual requirement for your company to have an account at a bank.

Comments:

Connect With Us

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment