Tanya asked:

Can I set up an online company with the business registered in the USA? It would service North America (USA and Canada)?

Sran Galbraith answered:

In today's digital world, a business can be set up in one place and do business in many other places. Issues that can arise when dealing across multiple jurisdictions are:

1. Enforcement. If you sell to a customer or client in a different jurisdiction and they do not pay, you will likely have to go to their home jurisdiction and register your business in that jurisdiction before you can pursue collection of a debt or any other claim.

2. Taxation. Many issues can arise when dealing with multiple jurisdictions. For example, the collection of sales tax. Also, if the jurisdiction of the shareholders is different than the jurisdiction of the corporation, issues can arise. Best to consult a tax adviser on this issue.

About the author

Stan Galbraith is a lawyer with over 25 years of experience. He was admitted to the Alberta Bar in 1983 and has operated his own law office since 1988. Stan has a wealth of experience ranging from litigation and appeal work to teaching and writing.

He has now left the world of litigation behind and works with commercial and residential realtors and their clients on closing their transactions. He also practices extensively in the areas of small business and wills and estate planning and administration.

You can find his website at www.galbraith.ab.ca.

 
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