Canadian Self-Employed working in US

[AndyC]

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?

[Steven]

"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