I have an IT consultancy and recruitment services company in canada. Looking ways to get into US market. Can you suggest. It's not specific to any city or state.
Your question leads me to more questions.
(1) Are you looking to relocate to the United States for this business? (Speak to an immigration attorney)
(2) What type of business entity do you have? (Sole Proprietorship, Partnership, Limited Liability Company, Corporation?)
(3) Are you looking to simply expand your business and conduct business in the United States, and if so, which state(s)? Each state has different guidelines, fees, and laws that are applicable.
If so, you may still need to talk to an immigration attorney to determine how much time you can legally spend in the United States. Outside of that, different states have different guidelines and fees but generally speaking, it is:
Sole Proprietorship: No state filings
Partnership: Maybe state filings
LLC: File with the state Secretary of State (or equivalent) [as a foreign entity wanting to conduct business]
Corporation: File with the state Secretary of State (or equivalent) [as a foreign entity wanting to conduct business] (Speak to a Business attorney)
You would also be responsible for federal and state income taxes (you posted for California, and they have additional fees), and would need to obtain appropriate tax ID numbers for State and Federal. (Speak to a CPA or a Tax Attorney)
There are a lot of issues to go over with business and taxes. The main issue is withholding taxes to a foreign taxpayer. You also don't want to get into a situation where you subject yourself to US taxation on your worldwide income. Best to sit down with a business and tax attorney that will give you individualized advice.
There are two ways you can approach this. You can attempt to work in the US as a Canadian company. There are lots of hoops you have to jump through for this and it is typically only done if US business is the exception not the rule. More practical is to open a US business entity in a friendly environ and collect revenue as salary, independent contractor payment or distribution of profits. Talk to a business attorney for help picking the location. If you are not planning on relocating to the US you will have to have a resident agent, sometimes call a registered agent, who resides in that state. This is for purposes of accepting service of law suits and little else. Generally, if you have a business attorney assisting you in establishing the US entity, that same attorney would be able to act as your agent, sometimes with a fee.
Talk to your business attorney or retain the services of a tax accountant to figure out the best way to draw your profits so they are only taxed once.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline