Canadian Self-Employed working in US

Moderator: Reba

Canadian Self-Employed working in US

Postby AndyC » Fri Aug 14, 2009 1:38 pm

Bookmark and Share
Hi,
As a Canadian, can I register a company in Canada and work and live in US? I can do contract service work for an IT company in US and invoice them.

Is that legal?
AndyC

New Member
New Member
 
Posts: 3
Joined: 14 Aug 2009
Gender: None specified
Country: Canada (ca)

Re: Canadian Self-Employed working in US

Postby Steven » Fri Aug 14, 2009 4:28 pm

Bookmark and Share
"A corporation is located where the work of the corporation is ordinarily performed." Which is a relatively famous piece of caselaw.

You have no work authorization in the US I assume, so the answer is "no". Even if you did it doesn't make sense because as a non-resident the Canadian corporation would be subject to the full whack of Part 1 tax rather than the reduced CCPC rate, plus it would be subject to US corporation taxes because you're doing the work in the US, not Canada (so it would have to claim a foreign tax credit and file a US tax return). And the corporation would have to have an EIN in the US and a US payroll in order to pay you (in addition to a Canadian business number), which is needlessly complex.

Far simpler to set up a US corporation and work for it in the US. If you want to set up your own business in the US the usual way of doing it is to get an E-2 visa: http://toronto.usconsulate.gov/content/ ... ment=evisa
Steve.
Steven
CanuckAbroad VIP
CanuckAbroad VIP
 
Posts: 3611
Joined: 28 Sep 2007
Location: Calgary
Gender: Male
Country: Canada (ca)

The following user would like to thank Steven for this post
AndyC


  • Did you find this topic helpful? If so, please link to it!
URL
BBCode
HTML
BOOKMARK Bookmark and Share  


Return to Canadians in the USA

Who is online

Users browsing this forum: No registered users and 1 guest

Latest Forum Posts

Top Travel Deals

Eurail Passes online!
For the Canadian overseas, or on the way...
Canuck Abroad - Flights, Hotels Expatriate Travel Advice