CANADIAN/US Dual Citizen RUNNING A MOTORHOME BUSINESS BETWEEN MEXICO AND US

Hi Davie....?????? here.How are you doing?I was going to e-mail
you tomorrow, but no time like now time. Dave I am starting a tour
business to Baja...Its somewhat unique. I will take couples on a
tour of Baja in my motorhome.

I plan to start up next winter.What state is the best to
get a business license and register...I assume a state with no
tax....What do you think?.......I trust you're keeping well?


david ingram replies:

Sounds like a great business. Being a retired dual US and Canadian
citizen leaves you in a great position to work out of the US in the winter and Vancouver Island in the summer.

However, your problem will not be with the United States. To do what you want
to do, you need a "great" insurance policy which you will need to
cover a BC registered motorhome to transport paying passengers
into Mexico from California or Arizona.

That might be hard to get at any price which will let you make a
profit.

You will also need an FM2 or an FM3 Mexican working visa.

If the idea is that you are going to be "in Mexico" already and
they will join you, you absolutely need an FM3 visa.

Where are you now?

I had Amazon.com send you a couple of book suggestions that you might
want to pick up if you are going to "Mexico".

Interestingly, when I was reading your email, a California client of Mexican descent whose
brother used to work in the WHITE HOUSE and now works with the
Tijuana Tourist Bureau came in the office. "HE" owns a rental
condo in Whistler and we are doing his non-resident tax return.

He is going to put me in touch with his brother and I
will see if there is anything else.

I am also passing this on to Salvador Huerta, a Mexican/Canadian CPA
who I am trying to put some "paid for" Mexican work together
"with".

You might be the first real client for the new venture.

BUT FIRST - go to a Good Mexican/American Insurance Agent. NO
Insurance - do NOT do it.

Make sure you can afford the insurance before I start running up a big bill.

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Dave, you are a gem. How did you know my routine, but I guess you know me by now. Insurance I will get. My base will be Yuma Arizona.

That's where I am now and just tripping in and out of Baja. Baja is becoming a big sell with Europeans,especially it seems with the Germans.

My trips will be 10days at $300 US a day, all the comforts of home. However I am flexible like I've always been.

I just talked to Yuma City hall and because I am outside the city limits I do not need a business license. Having a Mexican national on board (so to speak) would be a great advantage. All Safaris in the process of getting registered will start out of Yuma though Baja and terminate in Yuma. Clients would fly to Phoenix then on down to Yuma.

From Asia they would fly to LA then to Yuma.

Can I get them to sign a waver in case of whatever?

I plan on starting up in November this year. cheers, XXXX

------------------------
david ingram replies:

You can get them to sign a waiver, but it is not necessarily effective.

Remember that airline passengers sign waivers and regularly sue the airlines, the pilots, the ground crew and the driver of the snowplow.

The only thing that will protect you is a Major Insurance Policy. this means TWO MAJOR INSURANCE policies because you are going to be carrying passengers in the US in a Canadian Motorhome AND you are going to have paying passengers in Mexico.

You need to tell ICBC what you are doing to be covered for your public liability under ICBC.

You need some sort of policy for Arizona because you are acting as a livery vehicle picking people up in Arizona and should likely put an Arizona Licence plate on as well.

You may be taking people into California as well and likely need a livery licence or tag to operate there.

Remember that you are going across international borders where your situation will come to the attention of the authorities.

Miss one "little" item and you can be dead in the water financially. You also have to be absolutely sure about the passengers.

All you need is a German passenger with a joint and you will lose your motor home and could end up in a Mexican hotel with bars for 20 years.

All the good news comes from


INGRAM www.centa.com
Any comments from anyone? Past experience - comments about this reader's new business venture. Suggestions for a good Mexican / Canadian / US Insurance agent?

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