Living in Canada and working for USA company remotely

[dbrzak]

I need to know if I actually need a TN Visa to work remotely (from Alberta) and if I do can I go to any port-of-entry and renew the existing TN without going to work in the US.

[Steven]

You don't need anything from the US to work remotely, you live in Canada. You perform the work while you are physically in Canada.

[Reba]

the only reason you'd need a TN is if you will be going to the US to work. If you're staying in Canada, and don't ever even need to visit the US office for meetings, you don't need a visa.

[helmet112]

I'm about to take a job in a similar situation, working from Canada for a company in NY.

I've got a few things left to figure out:
1. They are open to either having me as an employee or as a contractor, are there any immigration/tax advantages either way?
2. I will need to travel to NY about one week per month. I assume I need a Visa. I held an H1-B previously but I surrendered it when I moved back to Canada to work for a Canadian company 2 years ago. I've seen reference to an L visa, so now am not sure if I should be trying to get a TN or L, since I will be staying in Canada.

Thanks for any help!

[Steven]

If you're doing the work in Canada, you don't need diddly squat. If you're going to a meeting to tell them what you've done or show it to them, that's B-1, so you don't need a visa, it's just a business meeting. (Supposedly this means you just waft your passport under the nose of the USCIS officer but people have been having difficulty with this lately, have some proof it's a legitimate meeting).

How you set it up depends on how much money you are making and whether they're willing to pay you in Canadian dollars. If you've got multiple clients and/or you're making substantially more than you can reasonably spend in a year, then the best idea is to set up a private corporation. The corporation bills them, the corporation pays you. The only real difference with a client outside of Canada is that the GST is zero-rated, so you charge them no GST. Or if they will pay you in Canadian dollars to your bank account, you can register as self-employed and bill them (this is the best way for a single client).

If you're their direct employee and you make a normal sort of salary, then they just do a W-2 and pay you in US dollars, and then you're into the whole cross border tax paperwork situation with the 1040NR, Form 8840, etc. And you'll need an ITIN if you don't have a Social Security number.

Which sounds complex but it's a lot less complex than setting up a corporation and filling in a T2 every year.

Basically it depends on the size and scope of your business.

The one big advantage of business in Canada is that the corporate tax rates are lower than in the US.

[helmet112]

Hi Steve,

Thanks for all the details!

Some related questions, sorry to keep asking:
1. I already have a sole proprietorship in Canada, can that entity bill the US company? I realize there are possible tax implications, and if it's better would eventually move to a corporation, but I just want to know if we can quickly get started this way.
2. Is there anything special my Canadian entity would need to do to allow "international business" like this?
3. I'm still a bit confused on the Visa situation. I will be doing my primary work in Canada, but I'll be going to NY once (for a few days) each month to catch up with people, meetings, but also would be doing normal work for any time I'm not in meetings. This sounds like it may not qualify for a L visa, do I need a TN?
4. Is there any difference in visas depending if I choose to be an employee of theirs vs. a contractor?

Also, in case I need it, can anyone recommend an immigration lawyer in Southern Ontario?

Thanks for the help!

[terryb]

bump interested too

[Steven]

Hi Steve,

Thanks for all the details!

Some related questions, sorry to keep asking:
1. I already have a sole proprietorship in Canada, can that entity bill the US company? I realize there are possible tax implications, and if it's better would eventually move to a corporation, but I just want to know if we can quickly get started this way.

It can, but it will make your T1 a real mess unless they pay you in Canadian dollars.

2. Is there anything special my Canadian entity would need to do to allow "international business" like this?

No, not for a service company, the only thing to be aware of is that on your bills you must be clear what currency you are charging them in and that the GST is 0%, you put "GST $0.00" on your bill and make sure their foreign address is on it. CRA checked me on this last year. If they insist on USD, it's best to do the exchange calculation on your invoice, i.e. $XXX x exchange rate = USD$XXX.

3. I'm still a bit confused on the Visa situation. I will be doing my primary work in Canada, but I'll be going to NY once (for a few days) each month to catch up with people, meetings, but also would be doing normal work for any time I'm not in meetings. This sounds like it may not qualify for a L visa, do I need a TN?

It depends what you mean by "work". If you're just checking your e-mails, you don't need work authorization, if you're sat in an office producing something new, then yes you do. It does sort of come down to case law, the legal principle of de minimis non curat lex comes into play: "the law is not concerned with trifles". In reality what it means that if you get a W-2 for anything you do while you're there then definitely yes, you need work authorization. If you bill them for anything you do while you are there, then yes, you need work authorization.

4. Is there any difference in visas depending if I choose to be an employee of theirs vs. a contractor?

Yeah, there can be a big difference. Bear in mind most of these things are not "visas". A TN-1 is not a visa, it is an entry category. The simple advice is not to do any work requiring anything more than a B-1 while you are there. That's what I do. Any inconvenience is a lot less than sitting around at the airport waiting for USCIS, or getting your client to do complicated paperwork, etc.