Hiring an employee in California (CA)

Before hiring an employee in CA, the employer needs to register with the state for 1. Employer Withholding Tax Licensure, and 2. Unemployment Tax Licensure. The employee must sign and submit to the employer the federal Form W-4 and the state DE 4. The W-4 is used for federal income tax withholding calculation, and the […]

• March 29, 2022

Incorporating in Wyoming

Are you looking to incorporate in Wyoming? It is one the best states in the United Sates to incorporate, particularly for a Canadian or a Non-resident of the United States. Let’s look into this. Wyoming incorporation requirements in the United States Wyoming is the 10th largest state by area in the United States, located on […]

• January 25, 2022

How to incorporate in US? State of incorporation? New York Company?

As discussed in our other blogs there are several benefits of incorporation. When it comes to a Canadian incorporating in the US, we come across the questions that how to incorporate in US? Or Which state of incorporation is better? Or What is a New York Company? In this blog we will be specifically discussing […]

• January 10, 2022

U.S. Corporate tax rates

How much tax do you pay in the US? What is the tax rate by the state? Before you incorporate in the United States, it is better to understand how corporate income taxation works in the United States. Different states in the United States charge different income tax rates in which some of the states […]

• December 1, 2021

What is a 401k plan?

Are you thinking about your retirement plans? Many of us before joining a new employer, do not pay attention to whether the employer has a well set up retirement plan for their employee? In your long-term tax planning as well as to secure your retirement future this could be a very important option to consider. […]

• November 28, 2021

What is an IRA?

Are you thinking about your retirement? Of course!  But it has a long way to go.  Dear friend, you need to act and plan it now. The important thought in this regard to consider is that, will you be able to generate the same amount of money when you reach 60ies or less? Maybe, or […]

Can I start my own company in USA?

How do I incorporate a business in the US? This is a great question, We always hear from our clients, should I incorporate my business? If my answer is “yes”, then the next question is, how will I incorporate it? Well! it is a little complicated process and we are here to help you. Trust […]

Sales tax nexus

Are you in an e-commerce business, an online seller, and selling your products through Shopify, Amazon, or eBay in the United States? You need to know “what is sales tax nexus” in the United States. The consequences of being not aware of this topic could make you liable for a huge amount of sales tax […]

Business structures/Legal entities

What are the types of Business Entities & corporations in the USA? Your business is growing in the USA? Is it a good idea to incorporate a small business? The answer is not simple in the case of cross-border taxation. Before discussing this further let’s discuss, all the options you have in the United States, […]

Sales tax rates

You have an e-commerce business and you are selling in the United States. Do you need to charge sales tax? Whether you need to charge or not, depends on your nexus with the United States. Please visit our blog “nexus” on this topic to learn more about it. In this article, we are going to […]

• November 27, 2021

Donations/Charity – tax benefits

When you donate you save tax. However, it is difficult to say if it is good tax planning or not as it depends on person to person. In materialistic terms yes you are getting tax benefits by helping others but in the non-materialistic term, you may think that you are getting much more than that. […]

• November 23, 2021

US payroll processing

Do you want to employ someone in the USA? Grow your business with additional support for your business by hiring an employee or contractor. An employee who can work for you and promote your business. You need to understand the employer obligations in regards to payroll in the United States to be compliant and mitigate […]

• November 17, 2021

LLC taxation

Wondering what is an LLC? LLC is a Limited Liability company. One of the most favorite legal entity structures that can be taxed as a Corporation or a partnership or as a sole proprietorship. This legal entity structure is not available in Canada. However, this could be the most tax-effective business structure for Canadians looking […]

• November 9, 2021

Capital gain tax exemption

What is the capital gains exemption? Can you be exempt from capital gains tax when a Canadian sells property in the United States? Can you avoid capital gains tax by buying another house? Most of the answers could be “yes”. In our following discussion, we are trying to outline those situations and the conditions that […]

• November 1, 2021

Canadian buying property in USA

What is withholding tax in real estate? Do Canadian pay capital gains tax on U.S. real estate? A Canadian selling U.S. property, need to know the U.S./Canadian tax implications. Knowing all the facts will help you keep more of the profits into your project and minimize tax.   Canadian buying US properties need to understand […]

• February 23, 2021

Claiming a dependent deduction

Can you claim a dependent on your individual income tax return? Well, it depends on your filing status and your relationship with the dependent. In this article, we are going to explore these relationships.   U.S. Citizen or Resident Alien – You can claim on your tax return a “dependent” who can be a qualifying […]

• February 18, 2021

44 tax-deductible expenses

What deductions can I claim for small businesses? How do small businesses maximize tax deductions? When you are in a business, these are the common thoughts you come across to achieve your tax-saving goal. You take all risks for your business and work hard to grow it, you deserve to keep maximum profit in your […]

• February 11, 2021

Small business deductions

What can you legally write off as a business expense? You may think that the money you spent is for your business. However, IRS may consider it differently. In this topic, we are trying to discuss and give an idea that what are the tax w-offs legally allowed and most importantly how it should be […]

Itemized Vs. Standard deductions

What itemized deductions are allowed? Which deductions are included in standard deductions? Is it better to take the standard deduction or itemize? These are the important questions you may have before filing your personal income tax return. The answers depended on your tax filing status, what you have on your plate to itemize, and then […]

• January 30, 2021

Foreign earned income exclusion

What is a foreign earned income exclusion? Who can avail of this tax benefit on his/her income tax return? You can claim this tax benefit or in other words avoid double taxation if you require to file a U.S. tax return simply because you are a U.S. citizen or you were a U.S. resident for […]

• January 26, 2021

What should be included in a FBAR?

What is FBAR reporting? Who needs to repot? In this article, we are discussing the details of FBAR reporting, who and when you must report.   FBAR reporting United States persons which include U.S. citizens, resident aliens, trusts, estates, and domestic entities that have an interest in foreign financial accounts or signature authority in any […]

• January 23, 2021

Streamlined filing compliance procedures

What are Streamlined filing compliance procedures? Who can file Streamlined filing compliance procedures? In this post, we are going to discuss the detail of Streamlined filing compliance procedures, who, why, and what need to file. Also what other alternatives do you have.   The streamlined filing procedures were initiated on September 1, 2012, and Since […]

• January 17, 2021

Who is a Non-resident alien?

Who is a non-resident alien for tax purposes? Why do you need to know? Well, the taxation of a non-resident alien is different than those who are U.S. citizens or residents in the United States. In this article, we will be discussing your tax residency status in the United States.   Please visit “Taxation of […]

• December 14, 2020

Owning your Real Property in an LLC

Do you want to buy a vacation property in the United States? Or do you want to invest in the real estate market in the USA? As of 2021 Canadian market is very hot in real estate, you have much better affordability in the USA. However, before making any such decision, you should look into […]

Passive activities loss limitation

Do you know a loss from passive activities will have limitations for tax purposes? You may not be allowed by IRS to set it off against your other income on your tax return. Let’s discuss in detail to get an understanding of passive activities rules for tax purposes.  Loss from your passive activities is treated […]

Non-resident alien, what is your filing status?

You are not a Canadian resident, but some income from the sources in the United States and still wondering if you need to file an income tax return in the United States? Let’s try and understand your tax obligations in the United States.   Non-resident alien filing US tax return 1040NR One thing is clear […]

Deductions and Credits for Non-resident alien

When it comes to the personal taxation of a non-resident alien in the United States, you may need to get an understanding of tax terms that can help you minimize your income taxes payable. In this blog, we will try to explain those terms which relate to the taxation of a non-resident alien in the […]