Canadian doing contract work for Cdn Company while in US

sisystems
New Member



Joined: 20 May 2008
Posts: 1
Location: Vancouver

Posted: Tue May 20, 2008 1:50 pm

 

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Hi,

here is the breakdown of my situation.

I am with a placement firm for IT contractors. A client of mine here in Canada has an employee who has been working in the US for some time. (3+ years)
His visa was such that because he was a specialized skill, he was not taking a US citizens job prospect.

That visa is expiring now. His wife still lives in the US under a similar visa.

The individual sees no issue with living with his wife as a spouse under her visa. (has looked into this already)

My client would like to remove the employee relationship with this individual, and through my firm, offer him contract work, while he lives there.

My question is, what is the approach to doing this? Does the individual need (and can he) obtain incorporated status in the US?

Is this even possible? He would I assume be paying US taxes on the income. This would not be taking a job from a US citizen. They would just have this individual work remotely from home, regardless where he was staying at the time.

Thanks in advance.

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Christopher G. Rizzo, Esq
CanuckAbroad VIP



Joined: 17 Oct 2007
Posts: 284
Location: Red Bank, NJ USA

Posted: Fri May 23, 2008 9:40 am

 

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The individual would need his own Canadian business and your company could support his business for TN status, assuming your company has no business presence in the United States.

A long time ago I did a TN where a Canadian was working for a large corporation in Canada as an independent contractor but he did not need his own business because the company had a U.S. business presence.

Be warned that a company cannot be formed for the sole purpose of TN eligibility, that would be considered fraudulent.
_________________
Christopher G. Rizzo, Esq
Special Counsel
Law Offices of David T. Ferrara, LLC
www.naftalawfirm.com
P: (732) 784-2877
Email: Crizzo@naftalawfirm.com

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