Ready To Start Down The Entrepreneurship Road. Is There An Order Of Steps I Should Take?

gr8dlr wrote: ↑ I don't think you should accept advice from a forum for this. Seek an qualified CPA for proper advice as your situation is complex...you might need to setup US structure if your customers are all US and if you have US presence (ie where is the manufacturing going to be done)? There are other cross border tax issues...like filing.

You can do some reading...just so you don't burn a ton of cash asking questions or figuring out what questions you should ask.

https://www.google.com/search?q=canadia ... e&ie=UTF-8

gr8dlr wrote: ↑ I'd start with the CPA.

Since your previous employer was in the same field...are you trying to duplicate what they do? If that's the case, you might want to know if there's any issue there ie non-compete? approaching clients? etc

J-Taiko wrote: ↑ I need to setup a U.S bank account, and taking the advice of many on these forums I will go with a BMO Harris account. I’m also planning to grab a U.S credit card hopefully(so I don’t have to keep paying exchange fees for all the supplies I’m purchasing from U.S distributors).

gr8dlr wrote: ↑ I'd start with the CPA.

Since your previous employer was in the same field...are you trying to duplicate what they do? If that's the case, you might want to know if there's any issue there ie non-compete? approaching clients? etc

maple1 wrote: ↑ +1 setting up the company can be done without a CPA but there are more things to consider. State and local tax for example is extremely complicated in US which varies by area. https://www.avalara.com/vatlive/en/coun ... s-tax.html

jaybeeg wrote: ↑ A couple of quick thoughts:

- Harris will give you a business debit Mastercard that you can use to purchase in USD from your US account without worrying about exchange fees.
- Set up a Transferwise account. It allows you to transfer money quickly between the US and Canada at extremely competitive rates. You can also send low cost wire transfers in USD (which I use regularly with Chinese suppliers)

Don't overthink things too much. Register a corporation and make sure you're set up with GST and import accounts.

Selling things into the US can be easy. If your product is appropriate for Amazon, you can use Amazon FBA to fulfill directly from their US distribution centers. If you're selling your product direct to customers from Canada, remember that the US allows you to send packages worth up to $800 to US customers without worrying about US taxes or duty. There are a number of shipping companies across Canada (Chit Chats, DYK Post, etc) that will transfer your packages across the Canada/US border at very reasonable prices and deliver them to the US Postal Service, FedEx or DHL for "local" delivery that looks like it's US-based for your customers.

J-Taiko wrote: ↑ My main problem is that I don't know who does what. Should I go talk to a corporate/business tax lawyer first to get the business registered or should I go to a CPA?

J-Taiko wrote: ↑
Also, I'm open to any recommendations of CPAs or lawyers that specialize in this field and people have experience with.

Scote64 wrote: ↑ One of the first things you will learn is that lawyers are very expensive. Sometimes you need them, but a lot of the time you can get more focused results from a better and cheaper source, such as your accountant.

As for the W-8BEN-E form:

The purpose of this IRS form is to declare that your company is a foreign entity (from the U.S. perspective), that you have no presence in the U.S. that would make you resident for tax purposes, and that you reside in a country that has a tax treaty with the U.S. (i.e., Canada, and you provide your CRA business number). The -E "Enterprise" version of the form is for corporations instead of persons.

You provide this form when a U.S. customer asks you for a T9. They are required to keep it on file to show why they are allowed to pay your invoices in full without withholding tax. They do not send it to the IRS, they just keep it on file in case they are audited. Your U.S. bank will also ask for this form.

Most U.S. customers will already know about the W-8BEN-E form, but occasionally you will get one who doesn't and insists that you need a T9 and a U.S. tax number. It is possible to get a U.S. tax number, but it's a lengthy process and costs you extra money every year for separate tax accounting fees, so not worth it when it's not required. Unfortunately it's very hard to find a specific simple document or U.S. government web page you can provide to an ignorant customer to convince them - typical tax guidance is all wrapped in dense legalese with hedging and qualifications everywhere. We've only encountered this situation a couple of times in many years of doing business in the U.S., and they gave in easily enough when we explained since it doesn't really matter to them - they're just covering their asses with the IRS. If we ever found a customer who was adamant about withholding tax, I guess we would just charge them extra and say fine, withhold the tax.

peteryorkuca wrote: ↑ Once you get into specialized accountants and lawyer, you are going have your balls tied to their yearly increasing demands.

Start today to minimize the cost you will inflict by doing most yourself. I would spend the time because you can spare now, on what you need for an accountant and minimize the need to just a bookkeeper that can handle hst, payroll and corp tax filing. Do the incorporate yourself whether fed or provincial, apply for gst/hst account. Few days research should suffice. As for a lawyer... Why do you need one?

J-Taiko wrote: ↑ My background is in engineering (I'm all about the details), but perhaps I'm looking into the details too much here.