How To Register A Business in the US from Canada

The United States is one of the most dynamic and opportunity-rich markets in the world. With a large consumer base, business-friendly legal structures, and access to global investment, it’s no surprise that many Canadian entrepreneurs see south of the border as their next big step.

But before you can land your first US client, open a USD account, or legally operate in any state, there’s one essential step: Registering your business. Finding out how US company registration works, from choosing the right structure and filing formation documents to navigating taxes and banking, gets your legal and financial basics in place.

We’ll walk you through everything Canadian founders need to know, including how to register a US business from Canada, which legal structure is right for you (LLC vs. C-Corp), what documents you’ll need, and how to handle things like taxes, banking, and payments, whether you’re launching a US entity or simply doing business in the US from Canada.

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Table of contents

Why Canadian Businesses Are Expanding Into the US LLC or Corporation? Choose the Right Legal Structure Limited Liability Company (LLC) C-Corporation (C-Corp) Best States for Canadians Registering a US Company What You Need to Register a US Business From Canada Step-by-Step: How to Register a US Company From Canada Taxes: What Canadians Need to Know Avoiding Double Taxation US Tax Filings for Foreign-Owned Businesses What If You Just Want to Sell to US Customers? Opening a US Bank Account From Canada Common Mistakes to Avoid Final Thoughts FAQs

Why Canadian Businesses Are Expanding Into the US

With over 350 million consumers, global economic influence, and a relatively simple incorporation process, the US continues to attract Canadian founders looking for new markets. Many small business owners, ecommerce sellers, and service providers register a US entity to:

• Build trust with US clients
• Access US-only platforms or marketplaces
• Receive payments in USD
• Streamline cross-border logistics

If you’re wondering, can a Canadian citizen open an LLC in the USA? The answer is yes. US law allows non-residents, including Canadians, to fully own and manage a US business.

LLC or Corporation? Choose the Right Legal Structure

The first course of action when considering US company registration is to decide which type of business structure fits your needs. The most common options for Canadians include the following.

Limited Liability Company (LLC)

• Most popular for freelancers and small businesses
• Offers pass-through taxation (but may have CRA complications)
• Less paperwork and flexible ownership
• Ideal if you’re running a service, consulting, or ecommerce business

C-Corporation (C-Corp)

• Preferred for startups planning to raise capital
• Taxed separately at the corporate level
• More attractive to US investors
• Better fit if a Canadian company is a shareholder

Keep in mind that LLCs can create tax complications for Canadian residents due to differences in how Canada and the US treat pass-through income. Many Canadian founders opt to form a US C-Corp instead or speak with a cross-border tax advisor before making the call.

Best States for Canadians Registering a US Company

While you can register in any state, some offer simpler rules and lower fees for foreign-owned businesses.

Top State Choices:¹

• Delaware: Most popular for corporations, with strong legal protections
• Wyoming: Low fees, no state income tax, privacy protections
• Florida or Texas: Good for those planning to operate primarily in one of those states

If you’re doing business in the US from Canada (e.g., shipping goods, having a warehouse, or employees in one state), you’ll likely need to register in that state, even if your company is formed elsewhere.

What You Need to Register a US Business From Canada

Even if you’re based in Toronto, Vancouver, Montreal, or somewhere else in the Great White North, you can register a US business remotely. Here’s what you’ll typically need:

• A unique business name available in your chosen state
• A US-registered agent (a person or service to receive legal mail)
• Articles of Organization (LLC) or Incorporation (C-Corp)
• A US address (your registered agent often provides this)
• Your Canadian passport or ID for identity verification
• A US Employer Identification Number (EIN) from the IRS²

No US Social Security number or physical presence is required.

Step-by-Step: How to Register a US Company From Canada

Here’s a simplified process for US company registration as a Canadian. Each step is important to making sure your business is compliant and set up for success from day one.

1. Choose Your Business Structure

Start by deciding whether an LLC or C-Corp best suits your goals. If you're planning to operate a service-based business with a few clients, a US LLC may be sufficient, just be cautious of Canadian tax treatment.

If you're building a scalable company, looking for investors, or want cleaner cross-border tax planning, a C-Corp is likely the better fit. Make this decision with the help of a cross-border accountant or legal advisor.

2. Pick a State

If you're unsure where to register, Delaware and Wyoming are often considered safe bets. These states are popular due to their low filing fees, strong legal infrastructure, and favourable tax laws. If you expect to have a warehouse, employees, or a storefront, you’ll likely need to register in that specific state, or “foreign qualify” your company there later.

3. Hire a Registered Agent

US law requires all companies to appoint a registered agent—a person or service located in your formation state who can receive official government correspondence and legal documents.

Many online services offer this for an annual fee, and often include address privacy protection and compliance reminders as added value. You can find registered agent services online for about $100–$300/year.³

4. File Formation Documents

Once you’ve picked a structure and state, file your formation documents with the relevant Secretary of State. For LLCs, this means submitting Articles of Organization; for C-Corps, Articles of Incorporation.

These can usually be submitted online and approved within a few days to a couple of weeks, depending on the state. You’ll pay a state-specific filing fee ranging from $50 to over $500 USD⁴.

5. Apply for an EIN

After your company is officially registered, you’ll need to apply for an Employer Identification Number (EIN) from the IRS. This is a federal tax ID number used for filing taxes, opening bank accounts, and dealing with US payment platforms. As a non-resident, you’ll likely need to complete IRS Form SS-4 and submit it by fax or mail.

Some formation services can help with the EIN process for an extra fee, or you can apply directly by sending the completed SS-4 to the IRS. You don’t need a US Social Security Number to get an EIN as a Canadian.

6. Set Up a Business Bank Account

Traditional banks may require an in-person visit, but Canadian-friendly alternatives include cross-border banks (like RBC USA or TD Bank USA) and digital platforms like Wise Business, which let you receive, hold, and send USD without needing a physical US address or office.

When setting up a business bank account, bring your full formation paperwork, passport or government ID, EIN confirmation letter, and proof of your Canadian business (if applicable).

7. Stay Compliant

Your responsibilities don’t end once the company is formed. You’ll likely need to:

• File annual reports or renewals with the Secretary of State
• Maintain a valid registered agent
• File federal and state tax returns, depending on your activity and income
• Keep up-to-date with sales tax rules, which vary by state

Missing filings or failing to pay state franchise taxes can result in penalties or even administrative dissolution of your company. Some formation services offer ongoing compliance support, or you can track deadlines yourself using a compliance calendar.

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Taxes: What Canadians Need to Know

Figuring out your tax obligations is one of the most important and complex parts of registering a US business from Canada. Both Canadian and US tax authorities may require filings, and without proper planning, you could face double taxation, compliance issues, or unexpected penalties.

Avoiding Double Taxation

If you’re a Canadian resident and own a US LLC, income may be taxed twice—once in the US and again in Canada. That’s because the US treats LLCs as pass-through entities, whereas the CRA may not provide the same treatment, depending on the setup. For example, if you’re the sole member of an LLC and don’t file a “special election” (have your LLC taxed as a corporation rather than a sole proprietorship), Canada could consider it a foreign corporation, leading to inconsistent treatment and a higher overall tax burden.

One way to reduce or avoid double taxation is to use the Canada-US Tax Treaty, which allows for foreign tax credits. However, the safest route is often forming a C-Corp or setting up a Canadian holding company that owns the US entity. In turn, you’ll have clearer alignment between the two tax systems and may be able to benefit from favourable dividend rules under the treaty.

Also, keep in mind that many US states have their own income, franchise, or gross receipts taxes, which are not covered under the federal treaty. For instance, even if you're not taxed federally due to low income, you might still owe state tax in California, Texas, or New York if you operate there.

US Tax Filings for Foreign-Owned Businesses

Depending on your structure, you may need to file:

• Form 1120 (C-Corp income)
• Form 5472 and pro forma 1120 (for single-member LLCs)
• State franchise or income tax returns⁵

Failure to file correctly can result in heavy penalties, so speak to a cross-border accountant early to avoid surprises.

What If You Just Want to Sell to US Customers?

If you’re a Canadian company selling to US customers, say, shipping products from Canada or offering online services, you may not need to register a US entity.

However, you could still trigger:

• Sales tax nexus in certain states
• US withholding tax obligations
• Requests from US platforms (Amazon, Stripe, Shopify) to register locally or provide a US tax ID

Many companies decide to form a US business to simplify compliance and unlock platforms unavailable to Canadian entities.

Opening a US Bank Account From Canada

Most traditional US banks require in-person visits to open a business account. However, a Canadian company doing business in the USA may be able to open accounts with:

• Online US banks
• Cross-border banking services (e.g., RBS USA, TD Bank USA)
• Multi-currency platforms like Wise Business

To open a standard US bank account, you’ll typically need:

• Proof of US business registration, such as Articles of Organization or Incorporation and a Certificate of Formation
• Employer Identification Number (EIN) issued by the IRS
• Operating agreement or corporate bylaws if applicable
• Physical US business address, as mailboxes and PO boxes typically aren’t enough
• Passport or government-issued ID for any account signatories or owners
• Beneficial ownership documentation (e.g., a banking resolution or ownership statement
• Some banks may also ask for a minimum opening deposit⁶

Cross-border options via Canadian banks: Canadian banks that have US branches or subsidiaries, such as TD, RBC, and CIBC, may offer streamlined business account setups with fewer requirements and simplified transfers.

Online alternatives (no in-person visit required): Platforms, including Wise, offer fully online US business accounts. Online alternatives offer the same functionality with greater flexibility and fewer fees.

Common Mistakes to Avoid

While registering a US business from Canada is relatively straightforward, there are some easy-to-miss mistakes that can lead to costly delays, compliance issues, or tax surprises down the road.

• Using an LLC without tax planning: This can lead to double taxation if not structured properly.
• Choosing the wrong state: Registering in the wrong jurisdiction can lead to extra compliance and costs.
• Skipping the EIN: Essential for banking, payments, and tax compliance.
• Forgetting ongoing filings: Missing annual reports or tax filings can dissolve your business or trigger penalties.
• Using a traditional bank with poor exchange rates: Can cost you thousands in conversion fees over time.

Avoiding these common pitfalls early on can save you time, money, and major headaches as you expand your business across the border.

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Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers
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• Business Debit Card: Invite your employees to order a debit card for free, and pre-set their spending limit. Add them to your Business account with controlled access and track their spending in one place.
• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local
• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met
• Free invoicing tool: Generate and send professional invoices
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Final Thoughts

Registering a business in the US from Canada is a strategic way to access new markets, increase credibility with American clients, and grow revenue across borders. With the right structure, legal filings, and cross-border tax planning, Canadian founders can build a US presence without ever leaving home.

Whether you’re considering US company registration or looking to simplify doing business in the US from Canada, having the right support and information makes all the difference.

And when it comes to managing international payments, Wise Business is a natural fit, providing transparency, control, and multi-currency flexibility so you can focus on growing your cross-border business.

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FAQs

Can a Canadian citizen open an LLC in the USA?

Yes. Canadians can form and own 100% of a US LLC or corporation.

Do I need to live in the US to open a company?

No. You can register your company entirely from Canada with a registered agent and remote filing.

Is an EIN mandatory?

Yes. An EIN is required to open a bank account, pay taxes, and do business legally in the US.

How do I pay US vendors or get paid in USD?

Wise Business makes it easy to send and receive USD payments, hold funds, and convert currencies without the usual bank fees.

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Sources:

1. https://stripe.com/en-ca/resources/more/what-is-the-best-state-to-incorporate-in
2. https://www.commenda.io/incorporation/register-a-company-in-usa-from-canada
3. https://www.legalzoom.com/articles/how-much-does-it-cost-to-have-a-registered-agent
4. https://www.legalzoom.com/articles/how-much-does-an-llc-cost
5. https://help.finaloop.com/en/articles/8424659-u-s-tax-requirements-for-a-foreign-owned-single-member-llc
6. https://www.kanzum.com/blog/tpost/d1h68x3cl1-how-non-us-residents-can-open-a-us-busin?