So I'm another poor Canadian trying to get an account with a US broker, specifically IB. Their Canadian registration is delayed, and may never happen. So I'm considering incorporating a company in Delaware (cheap, it's about $300 all said & done), and then getting a corporate account w/ IB. I think that's perfectly legitimate, no? Does anyone know of any caveats or reasons not to do this? I'm only hesitating because the international tax implications are not clear to me yet, but I wonder if there are other snags...
you'll also have to pay professional data fees as it is a company. re IB's canadian application, there is another meeting this month of the regs. we are actually hoping they grant approval this time around.
I believe that from a tax point of view you will be limited to the type of company you create. Non resident taxpayers are restricted from S-Corps and I believe partially for C-Corps. You should be able to form a LLC without any tax implications. I am not a tax professional whatsoever, but this is some of the info I found out while researching what type of entity to set up. Do an internet search on LLC,S-Corps,C-corps for more info. Hope this helps
here is another option: http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=15559346 Lets just pray that these IDIOTS at the OSC and IDA can get off their you know-whats and approve IB before the next ice age.
I just read an article at www.nationalpost.com where ScotiaBank (one of the 5 big banks) bought the Canadian operations of Schwab. In the article the writer said that there was a lot of competition and this was further proof that it was increasing! I laughed so hard....it was as if you could just hear the smooching sound of the writer´s lips off the bankers butt! I know that IB will finally get in because they are simply too big and too crafty for the IDA and the OSC. When they do they will rip the Canadian banks to shreds. It is then that I will have a nice bowl of popcorn in front as I watch the carnage...hehe
non resident are not restricted for C-Corp or LLC. Although the owner might need a ITIN identification otherwise will be subject to backup tax of 30%. Usually the best entity for a trader is LLC because you can avoid double taxation on income and capital gains. And this is available to non residents as well as residents. US gov does not make it difficult to tax you so it is almost always possible to create an entity and pay taxes in the US. tntneo
re: IB - i'll post on the other thread when i get some time later this weekend but.... i rec'd a response to a request i made regarding the IB application. It went something like this.... "We are telling the Canadian prospects that we want to serve them but that their regulator is making it impossible to deliver the service that we want to give them without adding cost prohibitive redundant layers to our business".
unF*CKING BELIEVABLE!!!!!! Def we will need specifics if we are going to lobby these idiots. Thanks. If I have a U.S. corporation does IB need a U.S. mailing address as well? thanks.
I'll get specifics next week and see if we want or can supply information for a grass roots campaign. I am not sure what they asked for this time but I imagine enough is enough. I agree it is a joke. I guess it doesn't matter much that IB has successfullly applied and been approved from most every significant regulator around the world, has a steller track record with the regulators, has ample funding etc. I know we ended up hiring some top Canadian guns to argue the case and i'm hoping the e-mail i rec'd was just from someone very frustrated. As for IB applications, I think I am better off not offering advice on how to avoid being noted as a Canadian.