Canadian buying in the US

by a searcher from Ivey Business School at Western University

11 months ago

Anyone have tips of what needs to be considered as a Canadian looking at a deal in the US? Challenges and solutions both welcome. Thanks!

1 like
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9 comments

searcher from Ivey Business School at Western University

Thanks all for the info on this. Understood on the added complexity (and therefore cost). If we're able to navigate this complexity with the support of cross border advisors, do you know if the final state can still be tax efficient? i.e. increased cost to set up and manage filings, but is there a structure that would be as tax advantageous as a comparable Canadian acquisition?

10 months ago | like reply | 1 like

searcher from University of Manitoba

Buying - A Canadian (either as an individual or corp.) can buy as USA business (either directly or through a USA holding company). Tax implications are real. There are for example massive penalties for not filing certain USA tax reports even if you have zero activity. You'll also need to declare all your USA/foreign income on your Canadian taxes.
Working - If part of your plan is to live & work in the USA, buying a business can be a great way to make it happen. Yes there are E-2 Visas and other tools available. If the business is of sufficient size, it can go through the sponsorship process to get the new owner whatever it needs.
As others have said, it's doable, just get good cross-border tax advice before you do anything. If it's a material size, there are all kinds of off-shore structures to minimize taxes, but they're complicated to setup and maintain.

11 months ago | like reply | 0 likes

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