untitled

roco
New Member
4 0 0

 

 

 

 

 

 

0 Likes
Ray_Belanger_MB
Shopify Partner
29 0 3

Hi Rosann

See my post of July 9th (in this Forum) for info on taxation and jurisdiction. Where the sale takes place is all important.

 It is far preferable to set up your company (i.e. incorporate) in the country in which you are a resident - especially when you are starting up. The hurdles for a non-resident incorporating in the U.S. are significant and expensive to overcome. You would want to establish serious market traction and a very robust cash flow before attempting a U.S. corporate presence.

 

Ray

0 Likes
roco
New Member
4 0 0

Thanks Ray for the prompt response. 

I plan to set up the Business in Canada as an LLC. With the shipments of my products being distributed from NY state. Am I required to charge any state/provincial taxes to customers purchasing my products from my online store?

Note: my products will be imported from Asia.

Rosann

0 Likes
Ray_Belanger_MB
Shopify Partner
29 0 3

Hi Rosann, 

Shipping from Ontario, you are obliged to collect sales tax as follows:

To a customer in an HST registrant province (eg. ON, NB, NS) you charge the HST rate for that province

To a customer in a non HST registrant province (eg. BC, QC) you charge GST (5%)

To a customer outside of Canada, no tax is due.  Shopify can normally set all this up for you

Importation may require tariffs and duties, depending on the product, but does not affect sales tax.

Ray

 

0 Likes
roco
New Member
4 0 0

Thank you for your help.

I am sure I will have more as we move down the path.

 

 

0 Likes
roco
New Member
4 0 0

Another question, if my payment processor deposit funds collected into a US bank account- how do you transfer funds into Canada. Or do I need to have the funds collected deposited into a Canadian US account?

 

 

0 Likes
Ray_Belanger_MB
Shopify Partner
29 0 3

The only way a payment processor will deposit to a U.S. account is if you have one.  In order to get a U.S. business account, you have to have a "presence" in the U.S - either through a company registered there, or through an agent who represents you there. Assuming you have this properly setup, then you can wire transfer across the border fairly easily.  Where you are going to be sales taxed, and income taxed, (municipal, state, and federal) in the U.S and (provincial and federal) in Canada is a complex issue.  

You want to have your ducks in order before committing ... contact me thru Linked In if you would prefer to discuss your business details offline. 

0 Likes