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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29909
Experience:  Taxes, Immigration, Labor Relations
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There JA: Thanks. Can you give me any more details about

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hi there
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Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!I will be helping you today.Please post your actual question.
Customer: replied 1 year ago.
Background: I have a dropshipping business - I am incorporated in Canada, but my customers and suppliers are in the US and place orders on my .com website. So while my business is registered in Canada, my US customers place orders on my website and gets there orders delivered from my US suppliers to them. I then pay my US suppliers.I want to open a US bank account to save on the exchange rate from CAD to US. In order to do that, I have to apply for an EIN number.Question: Considering the rules of permanent establishment and Canadian/US tax treaties, would I need to file a US income tax return (I do file income tax in Canada), and what steps can I take to avoid having to file an income tax return in the US?
Expert:  Lev replied 1 year ago.
You are NOT required to file the US tax return just because you will have the US bank account.Having a bank account does no't constitute as having a permanent establishment.Moreover - you may create a single member LLC in the US fully owned by you as a non resident alien - and have the bank account under that LLC name and tax ID - and that would not change anything regarding tax treaty benefits.Questions?