What does it take to incorporate a company in the U.S.?

May I work in the U.S. if I don't draw a salary?

If I sell to U.S. customers from my Canadian company, do I have to collect sales taxes? And What if I sell for myU.S. company?

May I drop-ship a large amount of my products to a warehouse location just south of the border and then fill the orders from there?

I still have a "green card" that was issued to me long ago, but I've been living in Canada for a number of years. Is my green card still valid?

May I make sales calls in the U.S.?

How much does it cost for a work visa or green card?

Is it easy to obtain a loan from a U.S. bank?

Is CDC a non-profit government organization? How do you get paid?

What does it cost to lease warehouse or manufacturing space in the States?

Are there grants available if I should locate in the area?

Q. What does it take to incorporate a company in the U.S.?
A. Less than three days and approximately $1,000.00 (U.S.). You don't have to be a U.S. citizen to own stock in it. And a Delaware incorporation is not to your advantage, unless you intend to go public. You should incorporate in that state where your central place of business will be located.
[back to top]

Q. May I work in the U.S. if I don't draw a salary?
A. No. Whether or not you are paid, much less by whom, is of no relevance to the Immigration and Naturalization Service (INS). Working here requires a work visa or green card. Doing any of the labor to produce your product or services constitutes work, and that includes supervision of workers.
[back to top]

Q. If I sell to U.S. customers from my Canadian company, do I have to collect sales taxes? And what if I sell for my U.S. company?
A. Sales taxes are collected only if you are selling to the end user. If you are selling to distributors, or to manufacturers who use your products in their production process, sales tax is not an issue regardless of who is doing the selling.
[back to top]

Q. May I drop-ship a large amount of my products to a warehouse location just south of the border and then fulfill the orders from there?
A. Yes, this is done very often, almost always with the assistance of a Customs Broker and/or a "pick and pack" operator. If your volume is large, however, you may wish to consider the start-up of a U.S. company. In this way, the Canadian entity can effect a "related party transaction" and pay a presumably lower duty. (Duty is normally paid on the sale price, which is usually higher when sold to a customer.
[back to top]

Q. I still have a "green card" that was issued to me long ago, but I've been living in Canada for a number of years. Is my green card still valid?
A. No. If you have been living outside the U.S. for a year or longer, you have probably (there are few exceptions) abandoned your status as a resident of the U.S.. If you attempt to re-enter the U.S. and use the old green card to do so, you will most likely be asked to surrender the card.
[back to top]

Q. May I make sales calls in the U.S.?
A. Yes, if you are a Canadian citizen selling Canadian products for a Canadian company, you will not even be required to obtain a formal B-1 (business) visa. Non-Canadian citizens will need a formal visa. Selling U.S. products or selling for a U.S. company requires a work visa.
[back to top]

Q. How much does it cost for a work visa or green card?
A. At CDC we do not charge for consultations, we charge only for assembling the documents and completing the government forms. If a visa is denied, our retainer is refunded in full. Prices for visas range from $750.00 to $3500.00, depending upon the type of visa. CDC will quote their fees and expenses in advance.
[back to top]

Q. Is it easy to obtain a loan from a U.S. bank?
A. Are you kidding? U.S. banks, particularly along the border, are familiar with the unique problems of Canadian corporations who are starting out in the U.S. However, the rules in the U.S. are similar to Canadian bank rules, the ability to repay the loan, large amounts of collateral and a good business plan are the minimum requirements. (CDC can help you package your loan request).
[back to top]

Q. Is CDC a non-profit government organization? How do you get paid?
A. No, we are for-profit and privately owned. However, because CDC has some non-profit governmental agencies as clients, they pay for some of our services. Our other services are paid by you (immigration, market research, and loan packaging) or in the case of our real estate services, paid for by the property owner (seller).
[back to top]

Q. What does it cost to lease warehouse or manufacturing space in the States?
A. Leased space near the Canadian border can range from $4.50 to $5.25 per foot, per year. Generally, utilities, taxes and insurance are included in this rate, but there are exceptions.
[back to top]

Q. Are there grants available if I should locate in the area?
A. Outright grants are rare. There are, however, payroll training grants if you create some new jobs. There are also a large variety of direct loan programs at very low interest rates.
[back to top]