Part II - Calgary Alberta Canada resident wants to

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Trust Nigel to point out the failings of a Nevada Corporation.  Nigel is the editor and chief factotum of www.countermoneylaundering.com and the World Money Laundering Newslettr which we distribute once in a while.  Few people know more about offshore schemes and jurisdiction shopping than Nigel.  
You can get a free trial subscription copy of his newsletter at
www.wmlro.com
david
-----Original Message-----
From: Nigel Morris-Cotterill [mailto:[email protected]]
Sent: Wednesday, September 03, 2003 1:39 AM
To: [email protected]
Subject: Re: [inbox]  Calgary Alberta Canada resident wants to doe-commerce via a Nevada USA corporation expatriate income tax expert experts advisors advisor
And he needs to double check the supposed protections of the Nevada corporation - and not with someone trying to sell them. They are not as bullet-proof as their promoters would have people believe!
Nigel.
----- Original Message ----- 
From: [email protected] 
To: CENTAPEDE 
Sent: Wednesday, September 03, 2003 4:06 PM
Subject: [inbox]  Calgary Alberta Canada resident wants to doe-commerce via a Nevada USA corporation expatriate income tax expert experts advisors advisor
Dear Mr. Ingram:
A brief background...I am a Calgary man looking to start my ecommerce venture from my home: an investment newsletter about US stocks marketed to US subscribers.
I intend to form a Nevada corporation to serve as my US presence and to protect my assets from litigious subscribers.
My two questions to you are:
1.    Need I register my wholly owned non-resident NV corp with CCRA? (I will happily pay Canadian income taxes on salary and dividends from the corp and US corporate taxes too. I am not interested in evasive strategems)
2.    Start-up expenses in my own name. How do I assign these to the forthcoming corporation?
I am fond of your simple but effective marketing methods. 
To your success,
==================================
David Ingram replies:
1.    Your Nevada Corporation is a Canadian Corporation also because the mind and control are in Canada.  You will have to file both an 1120 US return and then a Canadian T2 return.  Any tax owing to the US should be deductible against any Canadian Tax as a Foreign tax credit.
2.    Start up expenses are considered to be of a Capital Nature and are not deductible against the income of the corporation or your personal income.  You can see this by looking at any corporation's balance sheet and seeing Incorporation expense listed as an asset.
Therefore, any startup expenses would go on the balance sheet as an asset under Incorporation Expense, Startup expense, Exploratory Trip, etc.  The company would owe you the money as a shareholder's loan and you could take it out tax free to you but it would represent corporation tax paid monies.
Sonja Clark in oour office is best suited to look after you for all detailed work for the Nevada Corporation, your Canadian Corporate return and either of us could look after the personal returns resuilting. Sonja is a graduate of UBC Law School, a member of the Institute of Chartered Accountants of BC, A member of the Certified Public Accountants Association of the US and a former registerd lawyer (and CPA) for 14 years in Portland/  She does not function as a lawyer anymore but there is nobody in Vancouver or Nevada who is more qualified to look after your US / Canada Corporate returns.
I tend to be the creative person in the office and Sonja tends to keep us all on the straight and narrow.
Hope this helps, sorry for the delay
David Ingram of the CEN-TA REALTY  Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT,  the world needs more "lerts"
 
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