Business registration and primary market

[ltlamo]

Hello.
I don't speak the native language, so don't judge me so harsh
I live now in San-Diego, CA. My friend live in Toronto, Canada.
We are close to establish a business, website to sell t-shirts with our own designs. We trying to decide, where to register the company, in US or Canada.
We divided our duties, so i will take care about t-shirts, print on them, and manage delivery, so he gonna do designs.
I know that its much easier and cheaper to establish a business in Canada, especially in Toronto.
So the plan is:
Establish company in Toronto
create website and sell t-shirts for the US market

Eventually, he will just establish it in Toronto, but in fact ill do everything in CA, and selling for US people.
Is it make sense, and any pitfalls in that plan?

Thank you in a advance .

[vangogh]

Welcome to the forum ltlamo. No need to apologize for your English. Believe me. It's better than a lot of people who do claim English as their native language.

As long as one of you has residency in a location you should be able to register the business there. If you're going to sell everything in the U.S. you probably want to spend some time understanding exchange rates and finding out what taxes might be involved in selling products in a different country than where the business is located. I'm not sure if it matters much between the U.S. and Canada, but you never know.

It's really not that hard or expensive to set up a business here in the U.S. If you and your friend are going to form a partnership, I think you only need to fill out a single form. I forget the price, but it's not a lot. You'd also want to register a trade name. The price varies from state to state, but it's also not expensive and only takes a few minutes.

I'd say the main thing to figure out will be taxes given you're company will span two countries.

Hope something in there helps.