Americans, who are not incorporated, and who are carrying on business in a Canadian Province, must register their business in that province. To register, you must obtain an extra-provincial license. Failure to register can result in a penalty of $2,000 for individuals.
Selling products to Canadian customers or providing services to Canadian customers is considered to be ‘carrying-on-business’ in Canada. In addition, American corporations (LLCs, C-corporations and S-corporations) must also registered in a Canadian province where their business is conducted. Failure to register can result in a penalty of $25,000 for corporations. You have to obtain the extra-provincial license within 60 days of carrying on business in the specific province.
You should consult with a professional accountant to confirm the details of each province where you are carrying on business.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.