I need to create an LLC in order to obtain an EIN, so I can create a US Stripe account (payment processor gateway) so I can have a 2-day rolling period rather than a 7-day rolling period with a Canadian account (crap for cashflow). I'm starting to find success with dropshipping, but don't have the budget to hire a professional attorney/create and maintain a US corporation. Thus I have come ot the conclusion that an LLC is the way to go. However, i'm stumped on the double taxation aspect. Does anyone have any suggestions? Anyother payment gateways for my situation? Any other way to obtain an EIN?
This is Dallas from the Shopify Social Care Team.
When it comes to business locations and taxes it can really be a tricky and sticky situation if it isn't done properly. My number one recommendation is to always set up and run the settings of your business from the location that your business is actually physically located. Not only does it make the tax situation a lot easier it will really save you from running the risk of getting blacklisted if you are trying to use features from one country, but have your business located in another.
Now, from the sounds of it, you were trying to make your business run in two countries? If I am wrong and am not following along please let me know. Since you were running into some issues with finding an attorney and dealing with the legal issues may I suggest you change your payment gateway?
If you are located in Canada you will actually be able to receive your money with a pay-period of 3 business days. Now it isn't 2, but from the sounds of it on my end, it is a whole heck of a lot better than waiting for 7-days or trying to create a business and run it in two countries.
Another question that I will ask is what are you selling. I just want to make sure that the product will be compatible with Shopify Payment's Terms of Service in Canada.
I hope that helps to answer your question and give you an appealing option. If you would like more help or if you have any other questions please don't hesitate to reach out to me again.