Entrepreneurship
Stripe Atlas vs Delaware C-Corp: A Guide for Canadian Founders
Navigating the complexities of cross-border incorporation, tax treaties, and global scaling from a Canadian base.
6 min read
tax planning
Everything we've published on tax planning — 3 articles.
What to know
- Stripe Atlas offers a low-cost ($500) entry into the US market, but doesn't solve Canadian tax residency issues.
- Delaware C-Corps are preferred by US investors but can lead to double taxation if 'mind and management' remains in Canada.
- Canadian founders may lose the $1M+ Lifetime Capital Gains Exemption if they incorporate directly in the US instead of using a Canadian HoldCo.
- Filing an 83(b) election within 30 days is mandatory for founders to avoid IRS tax on unvested equity.
- A 'Can-Am Flip' (Canadian parent with US subsidiary) is often the optimal structure for scaling while remaining in Canada.
- Always distinguish the 'Assignment Rate' from 'Gross Taxable Pay' to avoid unexpected income drops.
Personal Finance
7 Ways UK Contractors Can Navigate IR35 Using an Umbrella Company
Mastering the balance between tax compliance and take-home pay in Britain's evolving off-payroll landscape.
5 min read
Wealth & Retirement
10 Global Passive Income Tax Strategies for High-Net-Worth Individuals
Optimizing international revenue streams for tax efficiency is the ultimate lever for achieving financial independence by 2027.
6 min read
Questions readers ask
- Can a Canadian citizen own a Delaware C-Corp?
- Yes, Canadian citizens can own and operate a Delaware C-Corp. However, they must report the foreign corporation to the CRA using Form T1134 and may be subject to FAPI rules if the company earns passive income.
- What is the main advantage of Stripe Atlas for Canadians?
- The main advantage is speed and access to the US banking and payment ecosystem (like Mercury and Stripe) without needing a US Social Security Number or physical presence.
- Do I need a US physical address for a Delaware C-Corp?
- You do not need a physical office in Delaware, but you are required to have a Registered Agent in the state to receive legal documents, which Stripe Atlas and other services provide for a small annual fee.
- What is the main benefit of using an umbrella company for IR35?
- The primary benefit is total tax compliance; the umbrella handles all PAYE and National Insurance deductions, removing the risk of HMRC fines for the contractor.
- How does salary sacrifice help contractors under IR35?
- It allows contractors to divert gross income into a pension before it is taxed, lowering their overall tax bracket and preserving their Personal Allowance.
- Are umbrella company fees tax-deductible?
- The umbrella's margin is deducted from the assignment rate before your gross salary is calculated, effectively making it a tax-deductible business cost.
- What is the best country for tax-free passive income in 2027?
- The UAE remains the leader for absolute tax neutrality, while Cyprus offers the best balance for Europeans with 0% tax on dividends for non-domiciled residents.
- How does territorial taxation work for HNWIs?
- Territorial taxation ensures you are only taxed on income earned within a specific country's borders, allowing foreign passive income to remain tax-free if managed correctly.