Canada vs USA โ North America Comparison
Wyoming LLC wins for most non-residents needing North American infrastructure โ lower cost (USD 100 vs CAD 250), no EIN complexity unique to Canada, and Mercury Bank. Canada is the better choice fo...
North America for non-residents
| Factor | USA (Wyoming LLC) | Canada (Federal Corp) |
|---|---|---|
| Corp. Tax | 0%* (single-member LLC, foreign-owned) | 15% federal + 8โ12% provincial (~23โ27%) |
| Small Business Deduction | N/A for foreign-owned | Only for CCPCs (Canadian-controlled) |
| SR&ED R&D credit | Up to 20% (federal RDTC) | 35% (refundable for qualifying CCPCs) |
| Min. capital | $0 | CAD 0 |
| Setup | $100 (Wyoming) | CAD 250 (federal) |
| Local director | No | Yes (at least 25% Canadian-resident) |
| Annual reporting | $60/year (Wyoming) | CAD filings + provincial |
| Form 5472 risk | Yes โ $25,000 penalty | No equivalent |
| Banking | Mercury Bank (excellent) | RBC, TD (in-person; 4โ8 wks) |
| US payment processors | Yes | Limited (need US entity for US processors) |
*0% for truly foreign-sourced income of a foreign-owned LLC. Form 5472 must be filed annually regardless.
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The Stripe/PayPal problem
A Wyoming LLC with a US bank account (Mercury) can access Stripe US, PayPal US, Amazon FBA US, and most US-specific payment infrastructure. A Canadian corporation cannot access US payment processors directly โ it would need a separate US entity anyway.
For non-residents primarily wanting US payment infrastructure: Wyoming LLC.
SR&ED โ Canada's R&D credit
Canada's SR&ED (Scientific Research and Experimental Development) programme provides a 35% refundable investment tax credit for qualifying R&D expenditure for Canadian-Controlled Private Corporations (CCPCs) earning under CAD 500K. For larger CCPCs: 15% non-refundable.
The 35% refundable credit is the most generous R&D incentive in the G7 โ better than the UK's RDEC (25%), France's CIR (30%), and the US's R&D credit (~10โ20%).
But: Only CCPCs qualify for the 35%. A foreign-owned Canadian corporation is not a CCPC.
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Choose Wyoming LLC if: โ Primarily US market, US payment processors, Amazon FBA โ Non-resident with no plans to relocate to North America โ Mercury Bank access is the primary goal โ Lowest cost North American entity
Choose Canada if: โ Relocating to Canada (CCPC status then available) โ Canadian market is your primary focus โ SR&ED credit qualifying (once Canadian-controlled) โ Canadian government contracts require Canadian entity
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.