Is it a problem if an Ontario Corporation does business in other provinces or countries?
November 26, 2021
Legal Moment on The Beat
|Announcer:||And now the Cohen Highley Legal Moment on The Beat.|
|Announcer:||I’m with Scott Robson from Cohen Highley Lawyers. Is it a problem if an Ontario Corporation does business in other provinces or countries?|
|Scott Robson:||The first concern would be related to taxation.|
|Scott Robson:||No one wants to find out they owe more taxes. It is one thing to have a few sales in say Manitoba or Michigan, but you need to be careful that the CRA or IRS doesn’t decide you were operating a business in that jurisdiction and taxes you accordingly.|
|Announcer:||What would make the CRA or IRS decide that?|
|Scott Robson:||There are a few things, but opening a physical location or hiring staff in those areas to service or prospect clients could put you at risk. In those scenarios, the CRA or IRS could decide you owe taxes as a local business. This may lead to you being double taxed with a long and expensive road to resolution.
If you’re planning on doing business outside of Ontario, I strongly suggest you speak with an accountant and a lawyer first.
|Announcer:||Thanks, Scott. This has been the Cohen Highley Legal Moment.|
|Singers:||Cohen Highley, we’re listening. cohenhighley.com|