my wife and I would like to open a business checking with RBC and start a business doing IT in Canada… any suggestion
If you open up a canadian business and sell to canadian clients, than you have to pay taxes in Canada
thank you for the information
Talk to a tax lawyer. I think there are tax exemptions of some sort, if you are not physically resident in Canada. It also matters if the business is a corporation vs soleproprietorship/partnership, and depends upon issues such as registered in Canada vs operating in Canada. Usually freelancing (which I think many of us do) is under sole proprietorship.
If i was to open an Web design freelance biz in Canada and charge only clients out of Canada, how much tax would I pay ?
Can one ooen such biz without ever being a resident there ?
Aby info usefull
Setting up a Canadian flow through company works much like the Delaware LLC flow through structures worked prior to Obama ruining it with FATCA. You can open any business in a BC LLP (British Columbia Limited Liability Partnership) and because it is flow-through, taxes are paid at the partner level. So if you are a nomad capitalist with no tax obligation anywhere you can use the BC LLP to sell anything anywhere where it is legal to do so. And if you don’t sell in Canada there are no tax filing requirements and no bureaucracy from Canada. If you use the structure to sell into Canada then you may be “carrying on business” in Canada which has defined statutory meaning, basically you have an office or employees or a phone number etc. in Canada which may require the filing of a Canadian tax return by the partners. You should probably consult on that issue as if you avoid the things the trigger the tax like having the Canadian phone number or a physical office of employees in Canada you can probably avoid the requirement to file tax returns. If you plan to sell mostly or all in Canada you may prefer a Canadian corporation which probably should be a BC corporation so you can have a non-resident director ie you. Canadian corporations have to file T2 corporate returns every year but fortunately there is a simplified version T2short for less complex businesses. Canada is very liberal. Almost anyone from anywhere can sell into Canada for most businesses.