Quick Answer: How do I incorporate a US company in Canada?

Existing foreign corporations can register to operate in Canada by either: Opening a branch office. To open a branch office, the foreign corporation must make an application for registration as an extra-provincial or foreign corporation in each province in which the business intends to operate.

Can a US LLC do business in Canada?

You cannot create a Limited Liability Company in Canada, however, you can still use a US LLC to conduct business in Canada. Generally, for tax purposes in the United States, an LLC with one member is considered a disregarded entity. … If an LLC has two or more members it is considered as a partnership.

Do US companies have to register in Canada?

If you wish to do business across all of Canada you will need to register in each of the 13 provinces and territories of Canada individually. Some provinces are busier commerce centres such as British Columbia, Alberta and Ontario and it may be prudent for you to register in those provinces first.

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Is it better to incorporate in Canada or the US?

Lower costs. Another potential advantage to incorporating in Canada is lower legal and accounting costs. In many respects, US-incorporated companies operating primarily in Canada must comply with a dual regulatory regime that requires guidance from both US and Canadian advisers.

How much does it cost to register a company in Canada as a foreigner?


Different Canada entity types Cost Draft invoice
Branch of a foreign company US$13,100 View invoice PDF
Representative office US$12,100 View invoice PDF
Canada LLC package US$22,850 View invoice PDF
Bitcoin LLC US$22,950 View invoice PDF

Can a US company work in Canada?

U.S. companies that carry on business in Canada are subject to Canadian income tax unless a treaty exemption applies. … While U.S. companies may be considered to be carrying on business in Canada, they may not be subject to Canadian income taxation if their activities are protected under the treaty.

Do US companies have to pay Canadian GST?

So, when are you obligated to charge federal sales taxes on your orders from the U.S. to Canada? To sum it up, if your e-commerce business is not a small business supplier AND does carry on business in Canada, then you are obligated to register for a federal GST/HST sales tax account.

Do American companies pay tax in Canada?

According to the Canada-US Tax Treaty, only those US companies that carry on business in Canada through a permanent establishment are required to pay income tax on the business profits earned through that establishment.

Can a non resident incorporate a company in Canada?

Yes you can. Forming and registering a corporation in Canada requires a registered head office in Canada. … However there are a few provinces such as British Columbia (BC), which allow non-residents of Canada to be directors of Canadian corporations.

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Does US and Canada have a tax treaty?

One of the main goals of the tax treaty between Canada and the United States is to prevent double taxation of Canadian taxpayers. Canadian residents who have income from the United States need to know the rules for filing taxes and how to lessen their U.S. withholding taxes.

Can a US company buy a Canadian company?

A simple solution is to use a U.S. “S Corporation” to own shares of a Canadian company. An S Corporation is also treated as a flow-through entity for U.S. tax purposes; so there is U.S. tax integration. The benefit of an S Corporation is that it is acknowledged to be a corporation for purposes of the Treaty.

At what income level should I incorporate?

For some people, if your business is earning over $100,000, incorporation will probably make sense for you. The tax dollars saved from tax deferral, dividend splitting or favourable tax rates on dividends will likely be greater than the additional legal and accounting costs.

What are the disadvantages of incorporation of a company?

Disadvantages of Incorporation

  • Formalities and Expenses.
  • Corporate Disclosure.
  • Separation of control from ownership.
  • Greater Social Responsibility.
  • Greater Tax Burden in Certain Cases.
  • Detailed Winding Up Procedure.

Is it better to incorporate federally or provincially?

The Advantage of Federal Incorporation

The main difference between federal and provincial incorporation is that federal incorporation gives your business increased business name protection and wider rights to carry on business throughout the entire country.

Do I need to register my business with CRA?

You need a business number if you incorporate or need a CRA program account. You might need a business number to interact with other federal, provincial and municipal governments in Canada. For more information, go to Canada Revenue Agency registration and provincial or other federal programs.

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Who can incorporate in Canada?

Anyone aged 18 or older who is not an undischarged bankrupt and is of sound mind can form a corporation under the CBCA (Canada Business Corporations Act) or the OBCA (Ontario Business Corporations Act). Likewise, one or more bodies corporate or corporations may incorporate a company.