In Canada, you'll pay 60% taxes on your pretax profit. In United States you'll pay Federal and States taxes on your pretax profit. This means that a California business pays 41% in taxes. You make money when you save on taxes.

I'm not an attorney nor an accountant. I'd advise that you discuss tax strategies with your tax advisers. I'm offering following from my business experience. I work on premise that you must pay taxes in jurisdiction in which you earned money.

If you have a local business, don't incorporate in a tax haven state, like Nevada. The taxing state will still want their taxes on money you earned.

Nasdaq and Over-the-Counter Bulletin Board (OTCBB) trade on a Bid and Ask format. Bid is price an investor is willing to pay for a stock. Ask is price that a shareholder is willing to sell stock.

The spread is monetary difference between Bid & Ask price. A stock with a bid of ten cents and an ask of twenty-five cents has a spread of fifteen cents. If spread is wide, for instance a bid of twenty-five cents and an ask of two dollars, few shares trade. If all other factors are equal, a narrow spread increases stock's trading volume. You can use spread to regulate trading volume.

If there's a Bid, without an Ask, share price is likely to move up. This is a situation where buyers are seeking to form a market. If there's an Ask without a Bid, stock will collapse.

Trading volume equals liquidity in a stock. Most shareholders are locked into Penny Stocks. They can't sell at a profit, without depressing price of stock. To create illusion of liquidity, some companies do round robin or wash trades. The insiders trade stock among themselves. The goal is to attract investors by showing high volume trading. Stock brokers love wash trades. However, practice doesn't create a strong shareholder base.