Canuck bound for the US on L1A... So many questions

I am Canadian and will be transferring to the Ohio factory of the same company I work for currently in Canada. Company lawyer has suggested a L1A Visa, and the intent is for me to work there for a 2 year period before moving onto a bigger position. I may have the ability to be paid by either division of my company, what are the benefits of going one way vs the other?

I have several questions regarding this move:

1) If paid via the US division what is the tax differential between Ontario and Ohio, and what could my net tax savings be if any? ($80k income)

2) If paid via the US division what are the requirements for my existing RRSP and Canadian bank accounts?

3) I own a few vehicles which I may take with me. Can I leave my insurance as is? Do i need to register my car in ohio? If so, do I need to import it and pay duties?

All insight is appreciated, as this is a new opportunity I am just beginning my research. Thanks in advance!

1. If you live in Ohio, get paid by ohio division. To do anything else will increase your taxes dramitcally.
2. the key is not how you get paid, but where you live. If you move to US, you need to put your RRSP with a Cdn broker that allows Ohio clients. TD waterhouse is likely the only one.
3. Again. You are MOVING TO US. Forget canada, you need to import, plate and insure your car in US.

Thanks for the reply AGN!

Any idea on the tax break % I can expect to receive vs Ontario? I've found tax structures for the federal tax in Ohio but not the state tax or possibly municipal tax (dayton area).

Does my position in regards to taxation, RRSP's, and vehicles change depending on the duration of my stay in Ohio? It may be as short as 18months? I have been given the impression that over 2 years and under 2 years must be handled differently.

Thanks again,

I suggest you read "The Burder Guide" available on Amazon. This book will provide you with a very good overview of the issues.

Before you rush into getting your visa, there are some things that you need to do before you exit. Likewise, there are some things that need to wait until you are in the US.

You do want to be paid from the US company. The comment that someone made about RRSPs is out dated and no longer applies. You will have to do something with your non registered accounts.

The comment that someone made about RRSPs is out dated and no longer applies.

What comment was that. RRSPs must be held by brokerages compliant with Ohio securities laws. there are very few of these.

Does my position in regards to taxation, RRSP's, and vehicles change depending on the duration of my stay in Ohio? It may be as short as 18months? I have been given the impression that over 2 years and under 2 years must be handled differently.

Not really. Most states view workers in that state as residents for the purpose of plates and registration, and thus insurance. You will need to formally import your cars. I've talked about RRSP. Canada can decide that someone who leaves for less than 2 years is still resident, but that does not apply to residents of treaty countries, like US. You live and work in US? You are non-resident of canada.

Now, you *can* have a say in this, by staying employed by your Cdn company. But think long and hard about where you will be in 2 years.