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Canadian Specialization

SPECIALISTS IN U.S./CANADIAN BUSINESS 


Our accountants have over 25 years of experience helping Canadian companies negotiate the tax and financial planning hurdles they face in establishing a business presence in the United States. Canadian companies considering business in the U.S. must be aware of various accounting factors which can have significant tax ramifications. These include: choice of business structure, tax rates, inter-company pricing, withholding taxes, state taxes, information reporting, and repatriation of profits to Canada.


Our experience in U.S./Canadian business finances enables us to provide expert advice and financial planning on U.S./Canadian cross border transactions. If you're a Canadian company interested in expanding to the U.S. market, our certified public accountants can help you.


SHOULD YOU INCORPORATE?


Our professionals usually recommend that U.S. businesses be incorporated for a variety of tax and non-tax reasons. However, we work closely with your Canadian tax advisers to ensure our recommendations make sense on both sides of the border.


The procedure for incorporating is relatively easy and typically performed by an attorney who will obtain the necessary charter from the appropriate state agency, provide the necessary bylaws, and conduct the organizational meetings of shareholders and directors.


BRINGING HOME THE PROFITS


Repatriating the profits of the U.S. subsidiary requires planning and a thorough understanding of the tax laws in both countries. Working with your Canadian tax advisers, we can minimize the taxes in sending profits home.


Tax planning for cross-border transactions is very complex and requires the coordinated efforts of professional tax advisers on both sides of the border.


WHAT YOU SHOULD KNOW ABOUT REPORTING TO THE IRS


Regulations require detailed record keeping and reporting by U.S. subsidiaries and branches of foreign corporations.


Reportable transactions include:

  • Sales and Purchases of Property
  • Rents and Royalties
  • Technical, Managerial, or Similar Services
  • Commissions
  • Amounts Loaned or Borrowed
  • Interest Paid or Received

Our certified public accountants can help you with every aspect of the financial planning process.


INTER-COMPANY PRICING: AVOIDING THE PROBLEMS


In an effort to combat potential tax evasion, Congress has given the IRS broad authority to reallocate income and deductions between a Canadian company and a U.S. affiliate.

The rules affecting inter-company pricing are often complex and confusing.

HEG CPAs can help you establish inter-company pricing policies that will survive any IRS scrutiny.