I am a French and Italian national currently living in Canada (Montreal) and I would like to incorporate an LLC in Delaware (USA) as I would like to start selling garnments/clothes from my own brand. I would like to sell them online and in other retail stores in Canada and overseas. I though about incorporating in Delaware however, before proceeding, I would like to get an accountant opinion on that too : what are the pro and cons of such decision ? How will I be taxed in Canada ?
I've already tried...
I would like to know :
- how my salary (coming from my Delaware LLC) will be taxed in Canada
- how my company revenues will be taxed (or not) in Canada
- how my dividends/stock earning etc... will be taxes in Canada
- what is the best option for me to follow in order to pay the lowest taxes in Canada
Answers
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You are acting questions about how and when in canada, what you need also need to be asking is the How and Why in the USA, based on what you are asking you will need to form the following type US business entity:
a) US Tax Return Form 1120-F (foreign corporation doing business in the USA) all INCOME from this business WORLDWIDE will be taxable to the US Internal Revenue Service regardless of where it is actually sold or how it is sold (retail vs. internet)
b) the good news is that the US gives you tax credits (credit paid on foreign taxes towards the US income taxes) so there will be no double taxation of the same income
c) I have recently done some detailed work with a foreign company from the netherlands getting book royalties from US sales
d) And I am in the process of closing down two US corporations that moved back to Australia
please contact me for follow-up details if you ar interested
Thanks,
Paul M Dolnier EA
IRS Enrolled Agent
Masters in Tax Law Degree
Former IRS Revenue officer
Senior Tax Accountant
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