Tax Tip - Tax Consequences for Canadians Doing Business in the U.S.

September 2018

If your Canadian business has expanded into the U.S. market or has dealings with U.S. customers, it is important to consider the U.S. tax implications of having a U.S. market presence. Canadians — individuals or corporations — can end up with a U.S. tax liability if they carry on a trade or business in the U.S. Even if there is no U.S. tax liability associated with carrying on a trade or business, there may be U.S. filing requirements, which must be met on a timely basis. If these requirements are not met, significant penalties may apply.