What Every Canadian Shopify Founder Needs to Know About the IRS | Ecommerce Coffee Break Podcast

In this episode, we dive into the common tax traps that Canadian ecommerce brands face when selling to American customers. Salman Salat, Founder of SAL Accounting, explains how the wrong business structure can lead to massive fines and double taxation. He shares how to legally avoid extra payout fees, when it actually makes sense to open a US LLC, and how to stay safe from the IRS while growing your brand across the border. Topics discussed in this episode: - How to avoid the 1.5% international payout fee. - What triggers the $25,000 penalty for missed filings. - Why opening a US LLC is risky without expert help. - How to prevent being taxed in both countries at once. - What "nexus" means for your US sales tax liability. - Why 70% of Canadian sales often go to US customers. - How to set up a US business entity the right way. - What clean cross-border bookkeeping looks like. - Why simple Shopify setups often hide tax mistakes. - How to legally lower your US tax bill as a founder. *** Chapters: 00:00 The Bookkeeping Mistake That Costs Shopify Sellers Thousands 00:34 Episode Introduction & Guest Overview 01:14 The #1 First Mistake Canadian Sellers Make in the U.S. 03:55 Tax Filing Penalties: The $25K Fine Most Sellers Don't Know About 06:13 Double Taxation Explained: Canada vs. U.S. 08:39 The Smart Ownership Structure to Avoid Double Tax 11:05 Who Sal Works With & Onboarding Process 14:46 Pricing, Value & Final Takeaways 🌐 Episode page: https://ecommercecoffeebreak.com/canadian-ecommerce-us-tax-guide/ CONNECT WITH OUR GUEST Website: https://salaccounting.ca/ LinkedIn: https://www.linkedin.com/in/musalman Instagram: https://www.instagram.com/salaccountingcpa Facebook: https://www.facebook.com/profile.php?id=61563329941327 *** 🏁 PAST EPISODES & STARTER PLAYLISTS https://ecommercecoffeebreak.com/all-episodes/ https://ecommercecoffeebreak.com/playlists/ *** LOVE THE CHANNEL? HERE ARE THE NEXT STEPS! 👉 SUBSCRIBE: If you liked this episode, let us know by hitting the follow button 👍 and share with friends. 📬 SIGN UP FOR THE FREE NEWSLETTER https://newsletter.ecommercecoffeebreak.com/ SUPPORT THE SHOW ON PATREON: https://www.patreon.com/EcommerceCoffeeBreak 🌐 LET'S CONNECT ON SOCIAL! - LinkedIn: https://www.linkedin.com/in/clauslauter/ - X/Twitter: https://twitter.com/ecomcoffeebreak - TikTok: https://www.tiktok.com/@ecommercecoffeebreak - Facebook: https://www.facebook.com/ecommercecoffeebreakpodcast - Instagram: https://www.instagram.com/ecommercecoffeebreak/ - Threads: https://www.threads.net/@ecommercecoffeebreak - BlueSky: https://bsky.app/profile/ecomcoffeebreak.bsky.social 🙏 GUEST REQUESTS & LISTENER QUESTIONS https://ecommercecoffeebreak.com/contact/ 💼 SPONSORS https://ecommercecoffeebreak.com/deals/ *** *DISCLAIMER/DISCLOSURE: Any information or advice we give is purely based on our own experience and research. There is no guarantee as there are many variables that will impact your success. Everything stated should be taken as an opinion. Some of the links on this page are affiliate links, meaning, at no additional cost to you, we will earn a commission if you click through and make a purchase. This video contains paid promotions such as product placement, sponsorships, or endorsements. We feature sponsored interviews with guests who paid an appearance fee that supports the maintenance of the channel and podcast. Thank you for your support! https://youtu.be/Q947d_zFyhA These are some helping words: ecommerce, shopify, ai, agentic commerce, cro, growth marketing, avenue z, digital marketing, dtc, online business