if you're Canadian trying to set up an Amazon FBA business you probably have a
lot of questions and concerns running through your head I know because I've
been there how do you set up the business what marketplace did you choose
how do you avoid getting taxed twice today I'm going to settle all those
questions and more so you can get your FBI business started on the right foot
what's going on fellow Canadians JT Franko here V no bullshit Amazon seller
and as you can tell by my shirt that proves my citizenship I have a Canadian
citizen
I've been in your shoes and I know the kind of questions that run through your
head when you're trying to start this
business up and unfortunately there's not a lot of info out there for us right
so I put the video together for you because I know I wish I had when I
started just something that would knock down all the questions on the doubts
that I had in my head okay so first of all I am a Canadian that
sells on Amazon and I sell on amazon.com okay
and I'll talk about in a second and I've also helped many other us actually help
a lot of people from the states from all over the world but also from Canada do
the same thing so if you're actually Canadian I did put a link in description
that you can download my free QuickStart guide for Canadians now it's kind of
kind of B what I'm gonna break down in this video but if you want to download
it and so you can have it you can read it on your spare time or just as you
know reference then the link is gonna be in the description okay so the first
thing I cover is which marketplace should each sell on in which marketplace
can you sell on so for some reason there's a misconception out there that
you need to sell on Amazon CA if you are a Canadian and that is not true okay you
can sell on amazon.com and I actually suggest that you sell on amazon.com now
I know if you are a Canadian that shops on Amazon you have a Prime membership
you're used to amazon.ca and you want to get sometimes people want to get the
products on there so that you know they can tell their friends and family about
it but trust me the reason to sell em calm is because there's way more upside
when you look at the marketplaces and the sizes of those marketplaces and you
compare them it's not even close right so amazon.com is of course the main
flagship Amazon Marketplace so there's more opportunity there's more people of
course there are more sellers so people think that needs more competition but it
also means there's way more buyers because over 50% of American households
have an Amazon Prime membership and the same can't be said for Canada and even
if the same could be said for Canada there's only 36 million people in our
country and there's 327 million in the States so it's basically ten times more
people which means 10 times more opportunity for us to capture and
generate more sales there so that's why I always suggest to sell on the dot-com
market and then you can always branch out to dot CA later once you actually
get your get going and you have an understanding and maybe
you want to start selling on the market and branching out into other markets
more than just Canada more than just us and look at other market options as well
right and I've never suggest to start at both at the same time you can do that
but it's just gonna be more complicated more complex and more expensive because
you now instead of just having a product from China shipping it to the States you
had a ship that to the states and to Canada right so now you're you're doing
way more you're doing double the work for not double the return so definitely
the question is what more questions so on I always suggest starting with calm
so now the question becomes when you set up your business how should you set it
up so when you start selling on Amazon you can just start as a sole proprietor
and that doesn't matter if you're Canada us anywhere you can just start selling
as a sole proprietor if you want to do that that's okay but right now I talked
about LLC versus corporation now a lot of Canadian sellers that we want to sell
amazon.com think they need to set up an American LLC and I highly suggest not to
do that okay become a Canadian corporation as a Canadian corporation
you are allowed to do business anywhere right so you can sell the state you can
sell in the UK then sell in India it doesn't matter you don't need an LLC a
US LLC to sell in the u.s. the danger of creating a ULS LLC is now you're up for
double taxation as a Canadian corporation you only need to be taxed in
Canada but if you set up an LLC you're up for double taxation because you will
be having to pay taxes because you are an American company the company will
need to pay taxes and then when that money is withdrawn to yourself as a
Canadian you're gonna be paying taxes on that again so if you were just keep the
money in the Canadian corporation as a Canadian corporation you are not paying
double taxes to the IRS and the CRA now I do want to mention as I just mention
anything taxes I am NOT a tax professional so make sure if you when
you go about this you consult the tax professional I am no position to give
legal or tax advice okay just a quick disclaimer so this is not legal tax
advice this is just me giving the general of what I know and from what my
experiences are okay so if you are actually going to go into business make
sure you have a tax professional set you up properly also I do want to mention
you can just start as a sole proprietor and then move up to a corporation later
once you know you start getting tracked you start getting bigger you don't have
to incorporate right away okay so the next thing we're gonna talk about is
banking as a Canadian alum seller it's not as easy as it seems to get money and
get deposits from Amazon okay when you're selling on amazon.com you need a
us-based bank account so that does not mean a cross-border bank account so you
know RBC they have cross-border banking where you have a u.s. account and a you
have a two accounts for us funds and Canadian funds that's not gonna work you
need an actual bank account that has a u.s. location okay so you can you can
obviously go to TV they all have different branches in the States but I
use BMO Harris for my own account right so you use BMO Harris that just gives
you a bank with a routing number that is attached to a u.s. location so they can
deposit the funds there so when you start making money on Amazon that's
where they're gonna deposit the funds right and then you can get keep that
there and keep that as US funds and then you know reinvest your profits that way
or then you can just send money back to yourself in Canada however you want to
structure that okay but you are gonna need a US banking account okay so back
to taxes a little bit I covered how you can pay double taxes when you set up an
LLC but there's also ways that you're gonna have to pay taxes in in the States
as a corporation as well and that is if you have what they call ETB u.s. if you
are engaged in trade or business in the United States so this is if you have a
physical location in the United States that is actually yeah you own like a
warehouse or like an offices there or if you have what they call a dependent
agent so a dependent agent is basically an employee so if this is an employee of
your company that does important work basically a work that it would be
considered an extension of yourself and not just like you know data entry kind
of work so if this is someone like a business partner or employee that is is
you know sourcing and stuff like that for you in the United States and then
you may be subject to attack pay taxes in that state however there's also what
it's called a independent agent so an independent agent is maybe someone that
works for you but is not part of your company so say you hired another
business in the state you're working with an agency or or something like that
that you are actually a client of theirs and they're not an employee of yours
then you're okay okay so how does it work with Amazon FBA with people at the
warehouse you know sorting our boxes and sorting
our packages okay so basically as alipay sellers we are importing from China to
the United States right and then Amazon the warehouse is amazon's employees and
robots are sorting and doing the picking packing and sending shipments out for us
so they are not dependent agents of us they are employees of Amazon so we are
okay on that front we don't have to worry about ETB us so as long as you do
not have a dependent agent or physical location in the states that is actually
under you or your corporation then you are okay so last is the ein the employer
identification number what is it and do you need it so yes you are going to need
to get an en when you start your business when you're starting to create
when you create your amazon seller account you're gonna need to submit a
tax ID and that's what the ein is since we don't have a social security number
because we're Canadian citizens we don't have a tax identification in the States
we're gonna need an EIN to tell the IRS a this is a business we are doing
business we have a presence in the United States but we are not we don't
have a physical education or don't have you know a dependent agent we're just a
Canadian company doing business in this state so when you get any again you're
gonna do some compliance you're gonna help fill yearly forms the calling one
is 1120 which basically says what I said it's saying hey we have a presence but
we're don't have any for the cool locations or Holdings in the United
States so to get your EIN you just need to go to the IRS website we can even
call the IRS and you can get that set up and they'll send you that number pretty
quickly I think it's like a week or two weeks or whatever it is and you'll get
that set up and then you can go ahead and you know start your account and
you're ready to go so that's really all there is to it it's not that hard
actually right there's a few mistakes that can
make it bad if you make little mistakes but really if you watch this video and
you download that free guide then you'll be good to go also I want to mention the
only Amazon FBA course out there that has a module dedicated to Canadians made
by a Canadian Empire Academy again this is a worldwide course it's for everybody
we've had success from Australia from the United States from the UK but I also
did it because I McCain is close to my heart I made a special module just for
you guys so Empire Academy link down below if
you're ready to get started today all right yes if I have for this video
if you want more click that video right over there my face to subscribe or click
that masterclass box in the bottom corner that's where I show how I was
able to go from zero to six figures in my first six months on Amazon as a high
school dropout with no experience no money and I detail the entire process so
you can go ahead and duplicate it like many of my success students have in the
past all right that's it I'm JP Franco you're an empire builder never forget it
and also never forget that your empire away