Cross Border Tax Consultants

Are you looking to incorporate your business in Canada but not sure how to get started? Here is a brief overview of the general steps involved to set up a corporation in Canada. Make sure whether you need to incorporate your business or not: Often people just want to incorporate their business without considering the tax consequences of the same decision on personal tax situation. At Maroof HS CPA Professional Corporation, we recommend to thoroughly analyze your situation and then decide if you need to incorporate your business. If not sure, feel free to consult an accountant specialized in corporate & personal tax services. There are many other ways to achieve liability protection and tax efficiency. Choosing between federal incorporation and provincial incorporation: Once you decide to incorporate your business in Canada, the next step is to decide the jurisdiction under which you can incorporate. In Canada, businesses can be incorporated either at the Federal level or provinc...

Know your income tax obligations as an online seller in Canada? Being a Canadian resident, your worldwide earning is subject to Canadian tax. Whether you run your business as a sole proprietor or a partnership, you’ll have to fill out form T2125 for your Amazon e-commerce business earning from all countries. In the event you run more than one business, you’ve to fill separate T2125 forms for each business type. If you run a corporation, you’ve to file a T2 for your company inside 6 months of the financial year-end. If you’re a Canadian having a US e-commerce store, feel free to get in touch with the income tax professionals at Maroof HS CPA Professional Corporation . We would love to explain all your income tax obligations as an online seller in Canada. Become An Online Seller –Start Selling In The US from Canada: The United States is a massive market of over 300 million customers who welcome overseas products. So, with the right business strategies and professional assistance Cana...

Yes, they can open! Earlier, you required to open an individual Amazon seller account for each Amazon marketplace: one account for amazon.co.uk, another for amazon.com, another for amazon.ca, and so forth. Fortunately, today Amazon gives an NAUA (North America Unified Account) with which you are automatically set up to sell in all three North American marketplaces: the US, Canada, and Mexico. By using the same account, you can manage your listings in all these marketplaces. Fees & taxes when importing to the US: If you are fulfilling your orders yourself, you will have to deal with US imports every time you get an order there. In fact, you will likely still have to deal with US importing laws even if you do FBA (Fulfilled by Amazon), as you have to send your merchandise off to one of Amazon’s US warehouses. In one way or another, you may discover yourself needing to reimburse a range of taxes and fees, which can differ widely depending on what you are importing, where it is goi...

  Corporations and their shareholders are separate legal persons. Earnings of a corporation are not the earnings of Shareholders of a corporation. Shareholders can withdraw money either in the form of salary or dividends. What is the difference between a salary and a dividend? Read this post . Salary results in an income tax deduction which reduces the corporate income tax at the end. Salary is an employment income for the shareholders and the corporation must make source deductions on such a payment. A T4 is issued at the end of the year to the shareholder-employees who record it as an employment income in their personal income tax returns. A dividend is a distribution of the after-tax earnings of a corporation. Unlike salary payment, dividend distribution does not result in an income tax deduction for the corporation and does not reduce the corporate income tax. A corporation must issue a T5 to each shareholder at the end of the year. Shareholders record this as investment inc...

Since the taxation system of Canada and U.S. are different it needs careful planning and consideration when Canadian Businesses want to expand into the United States. If you are a Canadian business want to operate in the US, you need to adopt any one of the four business structures: • U.S. Branch of a Canadian Corporation • U.S. Subsidiary of a Canadian Corporation • U.S. Limited Liability Corporation (LLC) • U.S. Limited Partnership (LP) Picking the right structure is a critical decision which can cost dearly if made wrong. Canada US tax Treaty overrides many provisions of Internal Revenue Code (IRC) in the United States and Income Tax Act (ITA) in Canada. For example, even if you have an effectively connected income for your business, the net business profits might be exempt from US taxes if the Canadian business does not have a permanent establishment as defined in treaty. If certain income is exempted from US taxes, it does not exempt Canadian business from reporting. General...

The 2 different tax systems of U.S. and Canada make the decision of Canadian businesses to expand in to the US such a complicated affair. Such a decision requires careful planning & consideration. Nevertheless, Canadian business can adopt different business structures to operate in the United States. US. Branch of a Canadian Corporation US. Subsidiary of a Canadian Corporation US. Limited Liability Corporation (LLC) US. Limited Partnership (LP) Canadian and US Businesses looking to expand across borders have found it difficult to select the right business structure. At Maroof HS CPA Professional Corporation , we help both Canadian and US businesses with their tax planning and tax preparation services. US partnership income tax return (1065) for Canadian businesses, US Corporate tax return 1120F for Canadian Corporations, or US individual tax returns 1040NR for sole proprietors or partners. We are a CPA firm registered with province of Ontario and Alberta, and provide income tax...

The first part of your business plan that a potential customer will want to check out is the executive summary. It is a brief glance at the vital elements of the whole plan – and it is critical. To help you, here we have listed 5 useful tips on how to pen down a professional-looking executive summary. So, let’s get started! Keep it brief but interesting: Your executive summary must explain the main highlights of your business plan, and leaves out less critical issues & factors. Though it is tough for many entrepreneurs to summarize the whole plan into a few words, it certainly can be accomplished by considering a few things: Consider your summary as an elevator pitch • Use it as a selling tool • Steer clear of jargons or explanations • No need to include graphs, charts, or figure • Add key metrics that ascertain your capabilities & performance Talk about market opportunities: Your business opportunities should be crystal clear in your executive summary. Make the reader aw...