I want to sell in US although I am an individual who resides in Canada. I have no LLC registered in either countries. Will I have to pay tax in Canada? What If I never bring the money to Canada?
Hello @mxamxulhaq1,
thank you for posting into our forum. This is a very common question. Many sellers are setting up virtual companies in other countries in order to be able to do business there more easily.
Most countries have tax treaties which are aimed to prevent double taxation. Generally, as long as you don’t withdraw any earnings in Canada and instead let’s say you keep them in the company’s US bank account, you shouldn’t be paying taxes in Canada.
Income from an LLC can be taxed twice to the owner—once in the US and once in Canada. US tax is owed when income is earned, while Canadian tax isn’t owed until cash is distributed.
However, I would advise you to have this verified with an accountant.
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