TN work visa and my own company invoicing

You really shoudn't.. although the criteria is as follows: as long as your Cdn client has no dealings in the US, and as long as neither you nor your foreign (Cdn) client are benefitting from your being in US, you can do the work.

Just to eleborate, if you don't need any info, access, materials, etc that would only be avalaible to you because you are in US, then you can work for this client while on US soil. And this client could not be IBM or some other firm which has US operations.

You would best get an opinion from a lawyer on this however.

I have both Canadian clients and USA clients. Here's where it's different from other threads I've read. I would be maintaining a Canadian residence/Mailing address and my company would be registered at that address. Invoices would show that address and payment would be mailed there.

Doesn't matter what your mailing address for your company is, matters where you are when the work is performed.

If the work you want to do is outside the remit of your TN-1, you can't do it, it's that simple really.

Be careful not to get yourself into complicated cross border tax issues. If you set up a CCPC for example, its tax status requires you to be resident in Canada which means you must remain a tax resident of Canada and pay taxes there (as well as in the US and file a foreign tax credit personally). Plus you want to avoid having to have a Canadian payroll and US payroll for your company if you can, so go on your client's payroll for example. Your family being in Canada would make moving your tax home to the US very hard, so bear that in mind too.

If you want to set up a company in the US then yes, E-2 is probably the better option. E-2 is complicated, it is helpful to find an immigration consultant who has done them before.

This is all great advice. Thanks.

So for me to continue my own business, the work for my American Clients needs to be done on Canadian soil, unless they also sponsor me. Fair enough.

It's starting to sound like it makes more sense to spend 1/2 the year in the US visiting my folks/travelling and then the other half in Canada doing my work.

Another question? I have a Canadian Business which also sells a particular product. The product is licensed to various clients. Currently, I send a monthly invoice for the use of the software. The license is about $1k monthly so a nice piece of change for simply sending an invoice.

My question is...

If I send a monthly invoice while I'm in the US (let's say I'm down for 3 months visiting) is that considered "work done on US soil?" even if it's just bookkeeping?

.. I'd say that this would be under the radar. Take some of that cash and spend it on a lawyer.

Can anyone refer me to a decent lawyer (In Canada) who can provide specific answers?

I hear great things about this lawyer as he is well versed with NAFTA jargon. I've received consulting advice a few times from him and he is pretty straight forward. The only thing is that he is in Buffalo: I believe he answers questions on this forum too.

http://www.naftatnlawyer.com/

If I send a monthly invoice while I'm in the US (let's say I'm down for 3 months visiting) is that considered "work done on US soil?" even if it's just bookkeeping?

It's treated as a royalty, there are specific provisions for reporting royalties and periodic income of that type, same situation as an author but obviously you need to declare it. Depends on whether it's "effectively connected with a US trade or business" as to how to report it.

This will give you a vague idea: http://www.cra-arc.gc.ca/E/pub/tg/p151/README.html

Our poster is not so worried about the taxation of his income. Rather he is asking if the mere collection of these royalties is considered "work".

I would say, no, based on the reaons I gave earlier.

Remember, steven, "effectively connected income" does not alays coincide with "source".

Pension income, for example, is never "effectively connected" to US, even if paid out by a US firm, It is however, always considered US source.

Which is what it says in the publication I posted a link to, which is why I posted it...