The funds will be used accordingly:
1. Set up U.S corporation, virtual office, merchant account, U.S bank account to be able to accept credit card payments again.
Looks like you need to hire a lawyer and rethink your budgets. Have you ever heard about state licenses, FinCen etc? And what bank are you planing to use for opening merchant account for "US corp" with virtual office?
Maybe you are skilled in software development, but your business model sucks ass, sorry. You should start from finding someone who understands legal matters, have you heard about e-gold and others?
This is our top priority right now and we have talked with about dozen merchant providers who specialize in e-cigs. This is the best solution for online Canadian retailers to be able to accept online credit card payments, and is a common business practise.