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How Can Canadian Businesses Benefit from an LLC?

By IncNow | Published June 11, 2014

canadian-maple-leaf-with-llc

If you want the benefit of an LLC in Canada, you will need to form an LLC in the United States. Most people from Canada who want an LLC will form it in Delaware. Surprisingly, Canada has no equivalent to the LLC under national or provincial laws.

The process of forming a Delaware LLC and operating the LLC within Canada is simple. First, you will need to file a Delaware LLC. Secondly, the Delaware LLC will need to be “legalized” so the foreign document can be used for official filings in Canada. Finally, you will need to register the Delaware LLC in the province where you are doing business.

US Business Services You Will Need to Purchase

First, you will need to contact an incorporation services company within the state of Delaware to purchase a Delaware LLC. An incorporator like Incnow can assist you with all of your US business service needs. Incnow’s complete package includes the LLC Certificate of Formation (the LLC itself), annual registered agent service, IRS forms and international priority mail delivery. These services are essential to operating a Delaware LLC within Canada. Additionally, please specify that you would like your members and managers to be listed on the filing document. This shows your connection with the company to the Canadian government. The complete package includes a written LLC operating agreement. An operating agreement is required by Delaware law to outline how the LLC will be owned, managed, and operated. It also may prevent future ownership disputes. Incnow will professionally prepare a written version for your Delaware LLC.

Legalizing Your Delaware LLC

Next you will need to legalize your Delaware LLC within Canada. A Delaware LLC is legalized by submitting a Delaware Certified Copy of the Certificate of Formation to the US State Department and the Canadian consulate. At Incnow, we can legalize your Delaware LLC as an additional business service.

Final Note

After legalizing the formation document, you will want to file the Qualification documents with the province where you will do business. Each Canadian province has its own protocol for qualification. Sometimes this is referred to as a “Statement of Registration”

The business services listed above are essential to operate your Delaware LLC in Canada. However, we highly recommend you consider additional business services your company may need. For instance, Incnow offers a Certificate of Good Standing which may be required to open bank accounts in Canada. You may also request to have the managers and members listed in the Certificate of Formation in Delaware, which makes it easier to prove ownership. Without that you may want to order the Statement of Organizer to help prove ownership. Please consider the needs of your business before your purchase so we can provide you with the appropriate services. If you are unsure about a business service or have questions, please call us at 302-575-0877 or email us at agents@incnow.com.

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When deciding where to form your company, consider that Delaware has advantages over your home state that may benefit you. Go