By: Jim Pettinger, President at UCanTrade,Inc.
Canadian businesses and entrepreneurs already have many good reasons to look south for more sales and profits – larger market, wealthier prospects, faster purchasing decisions, favorable exchange rate, favorable cost of housing, strong U.S. economy, tepid Canadian economy, and more and more left-leaning government policy. Now there is another incentive, particularly for those that wish to incorporate or purchase a U.S.-based business. As of January 1, 2018, the maximum U.S. corporate tax rate has been lowered from 35% to 21%. This is not all gravy – there are some offsets – but the potential long term benefit to business owners is significant. Highlights can be found in this Salesforce blog.
According to Darrel Degelman, business advisor at Chinook Mergers, Acquisitions and Business Brokerage, “Many free-enterprise Canadians are strongly considering the benefits of owning and operating a U.S.-based company. For some, this could include cashing in the equity in their home, whereby they might be able to use the cash to fund both the purchase of a business and an equivalent or better new home.”
Greg Boos, immigration attorney at Cascadia Cross-Border Law concurs: “We are increasingly helping Canadians obtain working visas, green cards, and ultimately, dual-citizenship for new business owners and their families. Some begin by simply commuting to their new business in nearby Whatcom County before deciding on anything more permanent.”
This more nearby opportunity is amplified by Tom Dorr, a Bellingham business consultant: “In my twenty-plus years working with small business owners and entrepreneurs, there has never been a more optimistic local business attitude than we are currently experiencing. We are seeing many businesses expanding and hiring more employees at higher wages.”
TradeTips blog is published by UCanTrade, Inc., your cross-border experts since 1984.
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