Compare jurisdictions side by side
See 2 or 3 jurisdictions side by side: all-in cost for year 1 and year 2, headline tax, audit, registers and time to form. Canada is a good fit for North America with treaty network. Panama is a good fit for territorial LatAm holding. United States is a good fit for Amazon, Stripe, Shopify, US clients.
| Comparing3 jurisdictions |  Canada |  Panama |  United States |
|---|---|---|---|
Onshore · LLC or C-CorporationUS$890Year 1 all-inStart in United States+ US Form 5472 filing US$899 a year, quoted separately | |||
| Cost | |||
| Year 1 all-in | CanadaUS$1,290 | PanamaUS$1,390 | United StatesUS$890Lowest |
| From year 2 | CanadaUS$930 | PanamaUS$1,000 | United StatesUS$490+ US Form 5472 filing US$899 a year · + state annual fee (varies) |
| 3-year cost (Starter) | CanadaUS$3,150 | PanamaUS$3,390 | United StatesUS$1,870+ US Form 5472 filing US$899 a year · + state annual fee (varies) |
| Tax & reporting | |||
| Headline tax | Canada~26.5% combined | Panama0% foreign-source; 25% on Panama-source profitBest | United StatesPass-through |
| Annual audit | CanadaWaivable by all shareholders (non-distributing) | PanamaNoBest | United StatesNoBest |
| Public register | CanadaPublic | PanamaDirectors public | United StatesLimited |
| Setup | |||
| Type | CanadaOnshore | PanamaOffshore | United StatesOnshore |
| Entity | CanadaCorporation (federal / provincial) | PanamaSociedad Anónima | United StatesLLC or C-Corporation |
| Minimum directors | Canada1; at least 25% resident Canadians (CBCA) | Panama3 | United States1 |
| Legal system | CanadaCommon | PanamaCivil | United StatesCommon |
| Time to form | Canada1–3 days | Panama5–7 days | United States3–7 business days |
| Best for | CanadaNorth America with treaty network | PanamaTerritorial LatAm holding | United StatesAmazon, Stripe, Shopify, US clients |
Ask about this comparison
AI answers from OCC’s published prices & facts · no sign-upWhich one for your situation
You need a business bank account soon
Canada or United States. Banks usually find onshore companies easier to assess, but each bank decides.
You want a lower running cost
Canada, from US$930 a year based on published year-2 prices.
You only hold shares or other assets
Panama. Your home country may still tax the income, so check that first (confirm with your specialist).
You need it fast
Canada, typically 1–3 days after KYC approval.
General guidance based on headline rules, not tax or legal advice. Your specialist confirms how tax residency, substance and banking apply to you before you pay.