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set the channel description: Everything related to BC LLP / ON LP and other Canadian entities

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Hi Everyone! Hope you are all well

I am looking into getting a BC LLP or ON LP, what?s the main difference between them?

Which one would be easier to get bank accounts for in CA?

Guys if a BC LLP couldn't get a bank account in Canada because of foreign partners will it work to incorporate a BC company and give that company 1% of the LLP (is it possible to give 0%?) so that now you have a resident Canadian member?

How the LLP profits will be taxed with a BC company as a 1% member?

@marziovit Canada is one of the easiest countries for non-residents to open a bank account. If you can travel in person to Vancouver you are almost guaranteed to be able to open an account (everyone I know that?s tried has been successful, same with Ontario LPs).

I do not recommend using a BC corp as second partner as that would trigger filing requirements in Canada.

@simon thanks. According to your banking database there are some circumstances where Canadian banks would open a remote bank account. Which are those circumstances? Also is there any bank with a higher percentage of opening success? thanks

@marziovit What I recommend is to open a TransferWise account for the BC LLP and to use that until easy travel to Canada becomes possible again (it?s possible to link Stripe, Shopify Payments etc with the USD balance in TransferWise). When easy travel to Canada becomes possible again, I recommend TD, Scotiabank and HSBC.

Holy Cow! Simon I just discovered that one member lives in a country where Scotiabank is present! https://www.scotiabank.com/global/en/global-site.html

Can we verify the Canadian LLP by verifying member's identity in another Scotiabank location?

@marziovit I don?t know if it?s possible, I?ve never tried myself or heard of anyone who did. It may be worth a try!

@simon any tips for getting more than 3 Transferwise accounts? They have not accepted my BC LLP transferwise account as I already had 4 accounts for other companies/personal. I emailed them but no news for 10 days

@simon This is the response i got from Scotiabank "As Scotiabank Canada and Scotiabank Panama act as separate entities, regrettably we may not be able to use the documents used with our partners at Scotiabank Panama. Additionally, to open an account with us at Scotiabank Canada, *it is required that you are located in Canada*."

The guy from HSBC said i could apply online without having to fly to Canada. LOL

This is the link he posted in the first reply: https://dco-fusion.hsbc.ca/demand_deposit/getting_started

What should the answer be here? The partnership is indeed formed in Canada but it doesn't have any of its business operations, such as location of staff, offices, factories, manufacturing plants or retail outlets, in Canada.

@frederic.scheffer That is strange, I?m not aware that they ever imposed a cap before. Let me know when they reply, what options they offer.

@marziovit It appears they will do a credit check on your company, you can establish a credit file at https://www.dnb.com/ca-en/duns-number/get-a-duns.html As for the answer, the correct one would be no but I wonder if that will cause the online application to be automatically denied...

Yes, if you answer ?no? the application is denied.

Guys, is the the ON LP the only limited partnership in the world that allows a member to be both the limited and the general partner?

@simon once you open a business account for your BC LLP you are free to withdrawal money as you please without the need of transferring them to individual members bank accounts, correct?

@marziovit Correct, as long as that is allowed by the LLP Agreement (the documents the partners use to determine all company terms and conditions)

LOL looks like i'm monopolizing this channel :slightly_smiling_face:

@simon is this LLP partnership agreement tool any good? https://www.lawdepot.ca/contracts/partnership-agreement/#.X_2JJun0nUJ

@marziovit Lawdepot has pretty good templates, it?s not a bad place to start

Does your registration service includes a partnership agreement creation?

@marziovit Yes

Hello! I just wrote to FS for a consultation about setting up a Canada LP/LLP or UK LLP, looking forward :slightly_smiling_face:

When filling out a form 3 to set up an Ontario LP, should my wife and I both be general partners? Or should she be a limited partner?

@russ7 you only need to have one general partner so she could be a limited partner

Thanks @simon . Any reason I wouldn?t put her as a GP? She truly is a partner

If liability isn?t an issue, and you are fine with both your names appearing on the registration form, I don?t see any disadvantages to both being general partners.

In the event that I die or become otherwise incapacitated, does being a GP make her life easier fir banking etc?

Not necessarily as that will depend on the partnership agreement (and what it allows each partner to do). You could add a clause detailing what happens in case a partner dies or becomes incapacitated.

Great news for Canadian business owners, TransferWise has finally launched their Canadian banking details! This means that it?s now possible to completely bypass Canadian banks, especially useful for BC LLP / ON LP owners who can?t travel to the country at the moment

:+1:

Unfortunately, you can only receive CAD with these details.

Just got one for my UK LLP, super useful for me :fire:

Any reason you didn't use a UK TransferWise Business account?

I have it too, but I used to be based in Canada and have customers there. They didn?t want to use TW to pay me? problem fixed

Guys, i'm a bit confused about Stripe payouts. If I have a Canadian stripe account but I receive also payments in EUR will Stripe apply a conversion fee if i will try to transfer EUR to my TransferWise EUR account?

@marziovit You can only link a CAD and / or USD bank account to a Stripe Canada account. As such, EUR payments will be converted at Stripe?s rate + fee.

thanks Simon, i was fearing that!

I got a VAT Moss number from Ireland for my BC LLP, but then I discovered it can be used just for selling and not to get VAT free purchase invoice. Do you have any idea how I can get a proper VAT number with prefix XX (country) and not EU prefix? Unfortunately stupid Amazon gets the invoices for the advertising in Europe with VAT added except if the VAT number is supplied.

@mich_cello Hey Mike with that VAT number will you be able to sell anywhere in EU right? Or do you have to open a VAT position in every country where you sell?

I don?t know. I just need it to get VAT free invoices from Amazon Advertising :sweat_smile:

I presume you are advertising on Amazon EU because you want to sell on Amazon EU?

I sell through KDP also in EU yes, but if I have VAT added I lose almost all the margin

Has anyone managed to open a Binance or kraken account for their BC LLP?

I take a seat. Really interested in this

Update: Amazon doesn?t add the VAT to the invoices addressed to a Canadian company. All good.

I thought wise has multi currency account?

I think I misunderstood. I actually opened a Wise account for a new Ontario LP yesterday and was able to create both USD details and CAD details.

I see. Is it the multi currency account? Was thinking of using it to accept more currencies.

When I set it up I could select from several currencies. I don?t remember which ones as I was only interested in CAD and USD

Got it. Thanks man.

Hi @simon and all seniors, for BC LLP registration, typically how long would that take if I go through Freedom Surfer? Also, can anyone advise on the process and procedure for Wise and TD Bank after getting a BC LLP ? :pray:

It varies depending on workloads at the registry (and whether there is a lockdown in BC) but currently it takes 2-3 weeks. For Wise, the procedure is the same as in other countries (you first verify your personal profile and then verify the business profile by uploading the documents I provide you along with some info about your business activities). For TD, you must travel to a branch and open the account in person, unless you already have credit history in Canada (in which case you can usually verify your ID online and apply remotely).

Thanks Simon. :raised_hands:

Hi Mario, did you manage to file a credit file at dnb and opened an account with hsbc canada in the end?

does anyone have any experience with NorthOne( https://www.northone.com/ ) for a Canadian LLP

does it come with a debit card

Same here :wink:

Would be interested as well.

Hi @simon and everyone. First of all, huge thanks to Simon for seamless BC LLP registration. And now a question: I accept payments in USD through Stripe, currently the payouts go to Payoneer but I'm going to change that and use Wise. The question is - what next? I'm trying to bypass withdrawing from Wise to my traditional bank account in my country of residence to avoid triggering taxes so ideally I'd need a virtual bank account with a debit card. Is there such an option? TIA

Bankera? Paysera?

@info596 it depends on where you stay

@joe in a country that's not supported by 99% of services and where I don't want to have anything anyway because that would be the same as withdrawing to a local bank.

try getting a n26 card, its easy to get with just an virtual address and mobile phone in the Europe. they accept non-EU passports. just be aware that N26 is a German EMI (or bank), i'm quite sure they will exchange tax information

@joe thanks! They're in Euros, though, not in USD. Correct?

yeah, butyou need to check with them. i think n26 also has an american arm as well.

Hello @simon... I already have a US LLC with Stripe but want to open another backup merchant account with Stripe using my CA BC LLP. Should I open that account using the same email address, as a multi-account on Stripe, or is that a problem? In case they close my US Stripe account, would they also close the CA Stripe account if they're under the same email address? Thanks

@claudiaroitmancorp Usually yes both accounts should be opened using the same login. To minimise risk, however, a different account representative could be used for the second company

Both companies are registered under my name. How could we use a different account representative for one? Or do we need to change company ownership? Or add a director?

The representative can be anyone in the business, just write them a resolution authorising the opening of the account

@simon - we left Canada 3 months ago to live in Belize. As you know, we are required to let the bank know we?ve left. But if I let the banks know, I?m concerned they will cancel my accounts and I will lose debit cards to access my funds. I have Transferwise accounts so don?t really need a traditional bank account ? any thoughts on how to access some kind of debit or credit card to withdraw funds from TW?

A workaround with the banks is to keep your local address / SIN on file while also adding your new tax ID. This complies with CRS requirements while keeping the risk of having your accounts closed due to non-residency to a minimum.

OK, great. I assume you meant CRA? And when you say Tax ID ? I don?t *think* Belize issues those? Maybe I am wrong though.

CRS requirements. It?s an automatic exchange of information scheme that Canada has implemented, it requires all banks to identify the tax residency of all account holders and collect tax IDs when applicable.

Do you know if Belize issues tax IDs?

I don?t know and it seems even the OECD doesn?t know: https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/

Ok, thanks. Will find out here

> Do note that selling services and products to Canadian customers from abroad, via a British Columbia LLP, will not usually be deemed as conducting business in Canada and as such, will not usually create a Canadian tax liability. Do we know this is safe - is it tried and tested? If so, would services sold to a Canadian client from a non-resident working from abroad be liable for VAT?

@ben659 Tried and tested. No sales tax on services sold to Canadians as long as the place of supply isn?t Canada. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4027/doing-business-canada-gst-hst-information-non-residents.html

Thanks @simon! Will it trigger alarm bells if one partner is me and the other a Panamanian sociedad anónima?

It won?t be an issue if you add the Panama company after you have opened your bank accounts, credit cards, payment processing accounts etc. I don?t recommend adding before opening those accounts because it?ll be a huge red flag with the banks. (you can setup a BC LLP with one partner, same with a ON LP)

Got it - won?t be likely to be a red flag for Canadian tax authorities? If I?m not being paranoid, I may opt to assign a colleague / business partner instead. I?m sure you?ve answered this many times, but is there info on when an ON LP is preferable to a BC LLP?

Having one partner? That won?t matter from a tax standpoint. It?s obviously better to have two partners though (so as to not risk a court dismissing the LLP if you were ever sued). As for ON LP vs BC LLP, I don?t see any benefits to registering an ON LP. The BC LLP offers the same benefits plus additional liability and privacy benefits. Cost-wise they are also equivalent (BC is 35$ annually while ON is 210$ every five years).

How do you setup a BC LLP with one partner?

Same as with two or more partners. A UK LLP can also have one partner but it?ll be struck off the registry if another partner isn?t added after six months.

So your suggestion is to start with one partner, open the bank account and then add the sociedad anonima as second partner.

Yes, as otherwise you risk not being able to open bank accounts due to the Panama connection

Simon, you've mentioned a UK LLP can have 1 partner for 6 months before it gets struck off. What about BC LLPs?

Same, although there?s no enforcement in BC as the ownership details are not filed with the government.

thanks

@simon does that mean that you could "potentially" get away with a BC LLP with one member for longer than 6 months?

@marziovit Yes, it would only be an issue if you got sued (and the court decided to disregard the LLP due to non-compliance with the act).