Canadian works for US companies remotely

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RahRahNew Member
Topic author
Posts: 1
Joined: 2 Mar 2010

Canadian works for US companies remotely

Post Tue Mar 02, 2010 7:38 pm

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.
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agnelsonCanuckAbroad VIP
Posts: 2868
Topics: 1
Joined: 26 Aug 2009

Re: Canadian works for US companies remotely

Post Wed Mar 03, 2010 6:38 am

Whether or not you get a tax ID will not affect your US taxes (which is NIL). If you really need one to open an account, then try and get one.

You live and work in canada.
This site is a travel site and not best source for these topics:
TN and TD info: http://forums.immigration.com/forumdisp ... -TN-Status
For US/Cdn taxes and SS/CPP:forums.serbinski.com/index.php
US Marriage-based Immigration: visajourney.com
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