Virtual Wholesaling US properties from Canada - Sole proprietorship or corporation

[D Kirk]

Hello,

First time poster here, I am looking to start virtual wholesaling properties in Seattle and I am currently based in Toronto. I was wondering if anyone knows if it would be best practice to set up a sole proprietorship or corporation for this. Also would wholesaling in the US be allowed without being a US citizen? Would I have to pay a US tax and Canadian tax on my profits?

Please let me know if anyone has some experience with this.

Thank you!

[Paul Sverdlin]

Note that CRA does not recognize LLC as a legal entity. Setting up any business opens you to a liability. I would suggest a C-corp in your case from both protection and taxation perspectives. Canada will tax you on income that you make world-wide. However if income is earned within a Corporation and does not get paid out to you as an owner, then CRA and IRS won't be taxing you on a personal level at all. You can re-invest that money in the business.

Lots of personal details to consider in matters like this. Better talk to a couple of cross-boarder lawyers and accountants to figure out what works best for you. Bigger Pockets is just a forum for directional recommendations, its not a place to get legal and financial advice on your own personal level.