Nexus refers to a connection or presence in a state that gives the state authority to require a business to collect and remit sales tax on transactions within that state. Historically, physical presence, such as having a store or warehouse in a state, was the primary factor in determining nexus. However, with the rise of e-commerce and remote sales, the physical presence requirement has become less clear, leading to confusion for both businesses and states.
Continue ReadingWhether you are a US resident or not, it is important that all individuals understand US estate tax and how it can affect them upon death. Estate taxes are taxes that are imposed on the transfer of a person’s estate after their death. These taxes can be imposed by both the United States government and the Canadian government, and they can significantly impact the value of an estate.
Continue ReadingThe division of income for state corporate income tax purposes is an important consideration for businesses operating in multiple US states, including Canadian businesses expanding into the US. For more information on the corporate income tax considerations for Canadian companies expanding into the US, we recommend reviewing our post on this topic, available here.
Continue ReadingSuccessful Canadian businesses commonly expand into the United States to continue their revenue growth. Many of these Canadian-founded companies do not realize that extending business activities to the United States could potentially expose the company to US tax implications, which are not considered in advance. Tax planning and structuring are critical considerations when expanding across borders so you can focus on your business growth instead of retroactively defending against possible assessments and potentially substantial penalties.
Continue ReadingOn December 22, 2017, President Trump signed into law H.R. 1 (originally known as the “Tax Cuts and Jobs Act”). Included are some of the most extensive changes to the US tax reform in years, discussed below.
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