Is Your Business Subject to US Tax? - Part I

It has become increasingly common for Canadian businesses to sell products and services to the United States. While they file their Canadian income tax returns to report their income, they seldom consider if they are subject to US income and sales taxes. They may be very surprised that they are.

The three main sources of taxation in the United States that a Canadian business should be concerned with are US federal income tax, state income tax and state sales tax. In Part I of this two-part newsletter series we discuss US federal income tax. You can find the newsletter here: