Do I need LLC to sell online in USA?

This is a common question for Canadian eCommerce sellers who are trying to expand in the US through Amazon, eBay etc.  

You do not need an LLC to start selling in the US. eCommerce sellers should try and keep things as simple as possible by using their setup in Canada to do business in the US. Canada has a tax treaty with the US which prevents double taxation. Therefore, it means you only generally need to pay taxes in Canada as a Canadian Resident. 

Creating a new LLC will lead to added compliance costs and increased work. Annual filing requirements increase based on the type of registrations done in US.

You might want to consider an LLC if your business becomes more complex and involved in the US. For example, if you hired employees, open physical office, wish to be purchased by another US company or for marketing purposes etc. Situation may vary depending on case to case. Please Contact Us if you need any help.

Click here to read in detail about different aspects of Canadian corporations.