US Contract work performed remotely from Canada

First off, sorry if this is a bit lengthy. Hopefully I am posting in the correct forum since most of what I read was in this forum.

I attempted to serarch for all details within the forums regarding working remotely from Canada for a US customer but wasn't able to find answers to my questions/concerns.

I am in negotiations with a US customer for a short term contract, 3-4, months with the vast majority of the work being performed remotely from Canada. The company does reside in the US and I will be paid in USD from the US. It is anticpated that I might be on-site for 1-3 weeks maximum and not concurrently. A week at a time. I am an independent contractor with a Canadian incorporated company and wish to establish a corp-to-corp agreement. I do not pay myself 100% of the revenue brought into my company.

The organization I am contracting to is very large with over 350k employees and contracts a lot of resources but I have some concerns about the agreement they have put forth. I have worked under very similar conditions working remotely for US customers in the past and have never been requested to do much of the following:

1) I am being asked to complete a W-9 form to get a Taxpayer Identification Number (TIN) from the IRS. I have stated that I do not what a personal services contract or file personal taxes in the US and rather would like a corp-to-corp agreement. IMHO, with the tax treaty and me being in the US at most 21 days I shouldn't have to file US taxes. So my questions on this are:

Is there truly a requirement for me to compelte the W-9 and acquire a TIN and why?

Won't I then be forced to double file taxes in both the US and Canada?

Won't all my revenune then be considered personally income as opposed to corporate?

Shouldn't I be able to avoid acquiring a TIN and double filing my taxes based on the work description I have provided?

I am also concerned of them then withholding taxes which if corp-to-corp I don't believe they should have any requirement. Is there any need for them to withhold any taxes?

If this is too long a message then this is my biggest concern and what I hope at minimum to get advice for.

2) I being asked for a "Form 941" and have stated clearly that I have a Canadian incorporated company and have never filed US taxes and have no plans and do not wish to have to in future if avoidable. As I read about this form it should apply to US companies only and should not apply to me now or in future.

Why would they keep demanding this and why should I do about this?

3) Similar to the last I am being asked for a "Certificate of Good Standing" but do not have a US incoroprated company.

Why would they keep demanding this and why should I do about this?

4) I am being asked for a "Mandatory Worker Visa#" but I will working mostly remotely.

Again, doesn't seem to apply to my situation but since I am not a US Citizen, Perminent US Resident there only other option they provide is a Mandatiry Worker Visa#.

5) 1-3 weeks on-site work

Would I be able to be on-site for a minimal amount of time under the guise of meetings without having issues crossing the border?

I may have to venture down the path of a TN visa but will hold off on that for now.

I am hopeful I can get them to backoff on those items that clearly shouldn't apply to me even though I haven't been successful to date and my biggest concern remains their demands for me to acquire a TIN and double file taxes and/or avoiding them withholding taxes which I don't believe should be required.

I am surprised of all they are demanding and would be surprised if I am the first Canadian independentt contractor with an incorporated compnay that they have tried to hire for service.

Any help and advice is most appreciated.

Jonathan

I answer this type of question on forums.serbinski.com....

You are being apid corp-to-corp. Foe the work being performed in canada, there is no need for you to suppkly any paperwork.

For the work being performed in US, I would be supplyiing a W-8 and perhaps form 8233 (you may need to get an ITIN). W-9 doesn't apply to you.

Your preference should be that they merely cut you a check.


But, if you reach an impasse and the firm insists on taxing you, you will get it all back, by filing a 1040NR, and applyiong the treaty.

Most appreciated. The company insists they have to withold 30% if I don't obtain a ITIN and doesn't seem to understand corp-to-corp and the tax treaty between Canada and the US. Really appreciate the advice and although I was aware I could go through the process of reclaiming I wasn't clear on what that would be and was trying to avoid it all together as it could easily be avoided. I will definitely check out your forum.

Thanks
Jonathan

Hey guys, I run a freelance internet marketing and web design business based out of Canada, just to pay bills and all that. All my business is done online and my clients are all Canadian. I am attending college in the US in June, and I know foreign (F-1) students can't work off-campus. Can I still run my business as long as I don't acquire American clients? I certainly don't make anywhere near $10,000 so I wouldnt have to file taxes either, right? thanks.

You could do this work if only for non-US clients (can you guarantee this?).

You would have to file taxes in both countries --- and report this income at least in canada. What makes you think that you have some kind of tax-free income allowance? You no doubt have other income.

Hi:

I am currently in Jonathan's situation: I am going to work in the US for US company as an independent contractor through C2C. I am incorporated in Canada. I would like to know if I need a TN to enter the US.

Any information is appreciated.

Lisa

1) I am being asked to complete a W-9 form to get a Taxpayer Identification Number (TIN) from the IRS. I have stated that I do not what a personal services contract or file personal taxes in the US and rather would like a corp-to-corp agreement. IMHO, with the tax treaty and me being in the US at most 21 days I shouldn't have to file US taxes.

Correct, you don't need an ITIN, your corporation pays you, they pay your corporation. You just send them invoices and the GST/HST is zero-rated because it's an export. You're a supplier, not an employee.

There is no need for W-8, 8233, etc. you are not being employed directly by them - your corporation is.

The only piece of paperwork you might have to file is a protective 1120-F to prove to the IRS what your corporation's US-source income is, but they usually don't care until it's more than $100,000.

For immigration purposes if you're doing an installation that is covered under NAFTA and you enter as B-1, not TN-1, get a purchase order from them and present it at the POE to prove it to CBP. If it's on-going work then yes you might need TN-1.

If you're actually working there for them you are eventually going to run into the question of paying US taxes, my suggestion would be to go on their payroll as an individual, otherwise your corporation would have to have a US payroll which is pretty complex and the 1120-F gets more complicated because you have actual US operations. Then you will need an SSN or ITIN, etc. For short-term stuff you might get away with just a 1042-S, but it's pretty clear from what you've said they're unfamiliar with how to file a 1042. You'd still need an ITIN, you get that by filing a W-7.

Either way, if you're actually working in the US for a US company you will need to file a US tax return.