Frequently asked questions for doing business in Canada
What is the appeal of doing business in Canada from the U.S.?
In addition to a close proximity and similar culture, Canada is the world’s second-largest country by land area and has the 10th-largest economy. A well-educated workforce, wealth of natural resources, and free trade arrangements with many of the world’s major economies make this a top choice for business investments.
What risks should I consider when expanding to Canada?
Canada typically ranks as a very business-friendly nation, so the risk of expanding here is quite low and the rewards can be great. The regulations, rules, and administrative burdens are very similar to the U.S.
What are the entity types available in Canada, and how do I select the right one?
The main entity types are Sole Proprietorship, Limited Partnership, Corporation, and Cooperative. Selecting the right one depends on business needs, size, tax goals, etc. CT can help guide you through this process.
What is the local tax rate?
Sole Proprietorship is 30-50% depending on the province; for a Limited Partnership, each partner is taxed personally based on their share; and Corporations are taxed 15% federally after the general tax reduction.
What licensing requirements are needed to do business in Canada from the U.S.?
Any entity conducting business in a Canadian province needs a license similar to what you would find in many U.S. cities, counties, or states. Professional activities like engineering or architecture are more regulated and require additional testing and training to be licensed.
Prepare for expansion in this region with all of the key information about tax rates, incorporation details, entity types, business environment, and more. Download the country guide for a comprehensive and easy-to-read breakdown.