Quote:
Originally posted by p00p
If you incorporate in the States, you still have to pay Canadian taxes. (well, you should...)
But, do you have to pay USA taxes too on your earnings?
So you get double taxed?
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Yeah, sort of.
My corp in the US, don't have to charge the PST/GST that our governements are so hungry to get. From my gross income in the US, I pay the IRS ( taken directly from the processors check, since American) about 20%. I then poay bills with the remaining including a management fee to my canadian corp. At the end of the year, you make your IRS tax return and get back a bit of money because of all the expenses.
The amount I bring back in Canada I have to declare, again after expenses. But you can also keep money in US account with debit cards, and use them here. So you only pay the US.
It was better before, but with this Visa thing there is not many choices. It is also easier to get as merchant account in the US with a US corp.
You have to make it so complicated that they will need forensic accounting to follow the flow....