Hello, I have some questions

  1. If I am looking to sell in US do, I need any tax forms or documentation, if I run as a sole proprietorship registered in Canada

  2. Do I need to pay taxes in both Canada and US?

  3. What’s the threshold for income tax increase and how much?

  4. What’s the benefit and disadvantages of registering business in US?

  5. How much the average person pays out of pocket at tax time for taxes in Canada on 100k sales (not profit)?

  6. Do most products sold in Canada on Amazon charge gst and hst ? (So you pay less at tax time if you already charged it ?)

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  1. If you’re a Canadian seller operating as a sole proprietorship in the US, you may need an Individual Taxpayer Identification Number (ITIN) or Employer Identification Number (EIN) to report your income to the IRS. You should consult with a tax professional to ensure compliance with US tax requirements.

  2. As a Canadian selling in the US, you may be subject to tax obligations in both countries. Canada generally taxes its residents on their worldwide income, and the US taxes income earned within its jurisdiction. The tax treaties between the two countries can help prevent double taxation, but you should consult a tax professional to understand your specific situation.

  3. The income thresholds for tax increases in both Canada and the US can vary, and they depend on various factors like your filing status, deductions, and credits. These thresholds can change, so it’s essential to check the most up-to-date information from the relevant tax authorities or consult with a tax professional.

  4. The decision to register your business in the US depends on various factors, including your business goals, customer base, and operational preferences. Some potential benefits include access to a larger market and reduced shipping costs. Disadvantages might include compliance and tax complexities. Consult with a business advisor for a comprehensive assessment.

  5. The amount of taxes you’ll pay in Canada on $100k in sales depends on your expenses, deductions, and other financial factors. Your net profit will be taxed, not the sales revenue itself. Effective tax rates can vary based on your individual situation.

  6. Many products sold in Canada on Amazon are subject to the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST), depending on the province. Charging these taxes is often a legal requirement. You should collect and remit these taxes appropriately to avoid potential issues.

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