Here is a breakdown of the estimated costs for 2026 in Canadian Dollars (CAD).
Cost Comparison: Ontario vs. British Columbia
| Expense Category | Ontario (ON) | British Columbia (BC) |
|---|---|---|
| Basic Incorporation Fee | $300 (Online) | $350 |
| Name Approval / Search | $60 (NUANS Report) | $30 (Name Request) |
| Annual Report Filing | $0 (included in tax return) | $40 (filed separately) |
| Resident Director? | No (Removed in 2021) | No |
| Virtual Office / Address | $500 – $1,200 /year | $500 – $1,200 /year |
| Total Startup (Gvt Only) | ~$360 | ~$380 |
Key Differences for US Citizens
1. Ontario (The Economic Hub)
- The “One-Stop” Filing: Ontario recently simplified its system. You often file your Annual Return (which confirms your directors/address) at the same time as your corporate tax return, which can save you one extra administrative step.
- Corporate Tax: The general corporate rate is 11.5%. Note that as a non-resident, you do not get the “Small Business Deduction” (which would drop the rate to ~12% combined with federal); you will likely pay a combined federal/provincial rate of approximately 26.5%.
2. British Columbia (The Flexible Choice)
- Privacy and Flexibility: BC is often considered one of the most flexible jurisdictions in Canada for international owners.
- Annual Reports: BC requires a separate annual report filing ($40) every year on the anniversary of your incorporation. If you miss this for two consecutive years, the province can dissolve the company.
- Corporate Tax: The general corporate rate is 12%, making the combined federal/provincial rate roughly 27%.
Additional Professional Costs
As a non-resident, your actual costs will likely be higher than just the government fees due to the following necessities:
- Registered Office Address: You must have a physical address in the province of incorporation. Since you are in the US, you will need to pay a law firm or a “virtual office” provider to serve as your Registered & Records Office.
- Legal/Accounting Setup: It is highly recommended to have a Canadian accountant or lawyer handle the initial setup to ensure you are registered for a Business Number (BN) and GST/HST (Sales Tax). Professional fees for this usually range from $1,000 to $2,500.
- IRS Form 5471: Don’t forget that your US tax preparer will charge extra (often $500–$1,000+) to report your foreign corporation on your US taxes.
Summary Recommendation
- Choose Ontario if you plan to have a physical presence, employees, or a major client base in Eastern Canada or the US East Coast.
- Choose British Columbia if you want the most historically stable “foreigner-friendly” environment or if you are operating from the US West Coast.
Would you like me to help you find a template for a Canadian “Articles of Incorporation” or a list of virtual office providers in one of these provinces?