TN holder - company going bankrupt I want to start a busines

Hi,

Any help would be appreciated. I've got a TN visa, just renewed. It looks like the company I'm working for will go bankrupt, they've given me green light to start-up my own business using all existing client base. It's something I can easily do and forecast sales in the 450K area and profits in the 150K area.

I already have an LLC with tax ID where I am sole owner.I can't get a TN from my own company. do I change status? If so to what? Is E2 viable - how long before I can start working for myself. I see the walls closing in - they've probably only got a couple months left.

thanks!

The trick here is to keep all the money in the corporation, I don't know what your tax year is for your LLC but you can just pay yourself annually or defer any salary at all until you get your visa. The problem of course is that your salary is tax-deductible against corporation tax, so you end up paying a load more tax if you leave it past the year end. If you're using an S-corp (which I don't think you can on TN-1) you'll have to file and change it to a regular corp, which will cost you heaps in extra tax.

However if it's a regular corporation you can put yourself down as a foreign employee and pay it out to a Canadian address, but then yawn, you're into the whole mess of paying Canadian personal income tax.

Anyway, the point to all this is that you can wait on your visa because technically you're not "working". If it's an existing client base and you're simply doing sales meetings (i.e. with known clients, you cannot canvas for clients) you can use a regular B-1 entry.

However, I very strongly suggest you do a close read of all the tax regulations both at the State and Federal level, and a very close read of what you can do on a B-1. (Bear in mind B-1 entry for Canadians is a broader category than for other nationalities, as it was expanded by NAFTA).

B-1 is only valid for six months and I think presence under another entry category counts against that period, so the sooner you apply for E-2 the better.

Whether or not E-2 or one of the other immigrant investor categories is the one to go for is something to discuss with the USCIS (and I think the Small Business Administration have something to do with it) and possibly a lawyer who specialises in it, as specific dollar amounts, the formation of the corporation, future prospects for it, etc. are important.

You mind find that L-1A is viable if you start up a Canadian branch, but I think that has to be arm's length like a TN-1, not sure though.

Thanks Steve.
1- It's an LLC that's set up;
2- I would still need to canvas for new clients (it's responsive though all the marketing and lead generators are set-up) I just answer the phone and go out on sales;
3- I'm not in a position to defer until the end of the year; and lastly,
4- You're right TN holders can't be part of S-Corps (at least in Maryland).

Well, the best advice is to apply ASAP, going from TN-1 to something else without leaving is tricky and if you leave and the application process is long-winded (which it is with E-2) then that will cause you a big problem too, so I think your first port of call is to talk to the people I've just suggested and someone who knows a lot about change of status from TN-1. Various lawyers etc. on here who deal with that sort of thing.