On a TN VISA, can I work Corp to Corp with US C Corp?

[fern1400]

I've been working in New York City for the past year as a W2 for a US Company who sponsored my TN as a Management Consultant.

Over the past year, I've received the benefit of a per diem, that has just expired. If I continue as a W2, 40% of my gross will be removed for deductions and taxes in the US.

I was wondering if I can work under a US C-Corp (which I opened up in DE)? The company I worked for said that it was not possible to work under a US Corp but I could use my Canadian Corp (Ontario LTD).

Can anyone here shed any light on the subject? I guess another option I have is to make the US C-Corp a sub of my Canadian company. Any insight would be greatly appreciated.

Thanks.

[Steven]

No, is the short answer, have a read of this thread:

management-consultant-llc-creation-vt6534.html

[fern1400]

Steven - No, is the short answer, have a read of this thread:

Thanks Steven that was the conclusion I came to. My company has said that they can sponsor me under my Canadian Corporation as I am a legal resident of Canada. They in fact have several consultants now and have had many in the past, utilize this approach.

Now given that, I was wondering if I could make my US C Corp a subsidiary of my Canadian Corp? I'll still have to file in both jurisdictions, but I'll already have my EIN for my US Corp.

Thanks.

[Steven]

It doesn't matter what company structure you use, because this is an immigration issue, and it must be arm's length for you to get TN-1. Whatever structure you use, if you have control over it then it's not arm's length and CBP consider you to be self-employed for immigration purposes.

I'm not quite sure I get the tax advantage of doing it this way anyway, if you set up your own corporation then you have to deal with all the corporation tax paperwork and retained earnings are subject to C-corp corporation taxes. Plus you'd have to get healthcare coverage yourself and do payroll withholding including the employer's contribution.

Even if it's a Canadian corporation with an EIN, the US-source income is subject to US corporation taxes and must be reported on 1120-F.

If you want to do it this way, like it says in the FAM, you really need an E visa: http://toronto.usconsulate.gov/content/ ... ment=evisa

But the amount of tax paperwork you're potentially setting yourself up for could be significant, especially if you use a Canadian corporation. If you've moved your tax home to the US you could use an S-corporation but that's really for self-employed people who want limited liability, there's no major tax advantage to it.