We are almost done creating a profile and are working ahead on needed documents...we have lived in Canada for one year. Before that we were 7 years in the states where we are citizens. I'm assuming the background check should be done in the states?
The background checks are done for all the countries where you have lived for more than 6 months since you are 18 or in the last 10 years.
So in your case, yes the background check shall be done in both USA and Canada.