British Columbia LLP

[fevanschalkwyk]

Hi,



For e-commerce, I'm considering setting up an LLP in British Columbia and adding a dormant UK Ltd as a partner with 0% ownership.

Does this structure seem realistic to you?

Could the fact that the Ltd is a 0% partner affect its dormant status with HMRC?



I want to avoid using an LLC because I plan to sell in the US and don’t want to create a tax connection there.



Thanks

 

[dogprince]

What's your plan for payment processing? Setting up companies is easy. Payment processing can be the tricky part due to residence requirements, etc.

 

[fevanschalkwyk]

I plan to sell only on amazon, so no issue about that.

 

[happyjohn]

The structure sounds fine, but having a UK Ltd as a 0% partner shouldn’t affect its dormant status with HMRC, as long as there’s no trading or activity.



Just make sure the Ltd stays inactive to keep things smooth with HMRC.



Your plan to avoid an LLC makes sense if you want to keep US tax connections clear.

You might want to double check with a local accountant to make sure everything aligns properly.

 

[DomOCT]

Sounds good but the structure will be subject to CRS reporting and it might be hard to obtain a Canadian tax ID for the LLP, in case you need it for whatever reason

 

[drspak]

personal experience you can only open a bank in person. No bank in canada opens online to non-residents

 

[fevanschalkwyk]

DomOCT said:






Sounds good but the structure will be subject to CRS reporting and it might be hard to obtain a Canadian tax ID for the LLP, in case you need it for whatever reason

Click to expand...

You're talking about GST number ? Why it will be difficult to get it ?

 

[fevanschalkwyk]

drspak said:






personal experience you can only open a bank in person. No bank in canada opens online to non-residents

Click to expand...

Thank you for the information, did you set up the LLP yourself ?

 

[churumbelo]

How the LTD could be a partner if it owns 0%?

 

[Marzio]

churumbelo said:






How the LTD could be a partner if it owns 0%?

Click to expand...



As long as the partnership acts allows it, who cares

 

[churumbelo]

Marzio said:






As long as the partnership acts allows it, who cares

Click to expand...

I did not know that. It would make sense that a partner should have >0%.



I think I read some time ago something similar for a UK LLP, a partner with 0%. But I can't really remember now.

 

[icecold]

drspak said:






personal experience you can only open a bank in person. No bank in canada opens online to non-residents

Click to expand...

If you fly to Canada, would it be possible for a non resident to set up a company and open a bank account by walking into a bank in person?