Need some advice here,
I work for myself in Canada, but ONLY for American companies. I have a sole proprietorship registered in British Columbia and Washington state and I am paid in American dollars directly from my vendors. I am not selling any products, this is strictly for services rendered.
I have an American bank account already and for the most part I have my vendors make checks payable directly to me as opposed to my business name as here in Canada, my bank holds all funds for a MINIMUM of 15 business days, which is ridiculous. So I have to drive across the border to deposit my checks and they are available the very next day.
Now I am trying to open a bank account with the same bank in my business name but they are refusing to do so unless I have a Tax ID # or EIN #. Does this mean that I will have to pay US taxes as well now? I am a bit concerned about giving all my info to the IRS and potentially having to pay taxes to both countries. I have read about the tax treaty, but I am not 100% clear about it all.
Which of these 2 is the easiest and cheapest to obtain and are there any other options I can pursue which would allow me to open a bank account with perhaps another bank that will not make me jump through all these hoops? I currently bank with Chase, formerly Washington Mutual.
I hope someone gets a chance to read this tonight and respond or I will be calling the IRS tomorrow and I am sure they will give me the only answer they have and the one that is most advantageous for them.
Thanks so much.



Privacy Policy