Entrepreneurship & Small Business

Launching an app - what do I need to make it available in the US

  • Last Updated:
  • Nov 22nd, 2018 8:53 pm
[OP]
Sr. Member
Dec 27, 2005
543 posts
66 upvotes
Toronto, ON

Launching an app - what do I need to make it available in the US

Hello all,

Maybe someone can give their feedback regarding my questions.

I'm starting an app . Its a peer to peer service type app .. similar to Uber but not rideshare ( one party spends,. The other party earns )

Since I'm in Canada, easier for me to do that here .

If I was to start the same service in the US. What would I need.

My questions:

Would I need a local partner?

Would I need a US based bank account for transactions in between the peers. Locally I'll be using moneris as the gateway .

Taxation ?
Last edited by paf on Oct 3rd, 2018 9:21 pm, edited 1 time in total.
7 replies
[OP]
Sr. Member
Dec 27, 2005
543 posts
66 upvotes
Toronto, ON
Just a minor bump to see if anyone has any Input
Deal Fanatic
Nov 17, 2004
6683 posts
1022 upvotes
Toronto
As far as US bank account is concerned, you can get a US banking account through RBC/BMO/etc... and it will function identically as a real US banking account.

Taxation wise, I have no idea.
I workout to get big so I can pickup bricks and ****.
[OP]
Sr. Member
Dec 27, 2005
543 posts
66 upvotes
Toronto, ON
toalan wrote:
Oct 3rd, 2018 9:20 pm
As far as US bank account is concerned, you can get a US banking account through RBC/BMO/etc... and it will function identically as a real US banking account.

Taxation wise, I have no idea.
I thought about that but what if I need to send money to the users bank account in the US.. don't want to pay Transaction fees like $40
Deal Addict
Jul 4, 2004
4818 posts
922 upvotes
Ottawa
I suspect you won't find the expertise here and will have to check with an accountant.

My gut feeling is that because you are offering a service in Canada and the US (not just an app), you will likely need a US entity and a Canadian entity. If that's correct, you can certainly form a US corporation and don't need a US partner but it might be easier / cheaper to start with one. I'm not sure if you can do it individually in the US (it might be possible). You probably want to check with an accountant about the best way to setup this US corporation as well.
[OP]
Sr. Member
Dec 27, 2005
543 posts
66 upvotes
Toronto, ON
michelb wrote:
Oct 4th, 2018 8:25 am
I suspect you won't find the expertise here and will have to check with an accountant.

My gut feeling is that because you are offering a service in Canada and the US (not just an app), you will likely need a US entity and a Canadian entity. If that's correct, you can certainly form a US corporation and don't need a US partner but it might be easier / cheaper to start with one. I'm not sure if you can do it individually in the US (it might be possible). You probably want to check with an accountant about the best way to setup this US corporation as well.
Thank you
Deal Addict
Jul 5, 2006
1086 posts
41 upvotes
Toronto
In terms of Banking, go TD. TD-USA will be able to link your USD account to your borderless account in Canada and you'll be able to transfer your funds between two countries by a single phone call from literally anywhere.
Newbie
Nov 21, 2018
2 posts
You dont need a US corporate entity. You can sell to the US as a foreign company. But if you have an overwhelming urge to do so I would suggest checking out Stripe Atlas, they will set up a US entity for you + a US bank account for 500 USD.
In regards to taxes, you pay them based on whether you are viewed as an America or a Canadian company (or if you have two legal entities then each one pays). But lets say you sell your app in the US but from here, you would be paying taxes to CRA.
You have to also keep an eye out on exchange rates -- you pay taxes in the currency of where you pay income tax. So if you are a Canadian company you will have to convert your income and expense from USD to CAD on the day the transaction happened.
If you are selling an app be aware that you may have to collect state or provincial sales taxes -- its a pain in the butt because each state and province has their own rate.

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