Consulting service to US Corp

keen2learn · Post by **keen2learn** » Fri Aug 19, 2011 9:53 am

Hi there

My corporation is providing consulting services to a US company from Canada. I work from home and my travel to US is very minimum. Mostly all work is done from Canada. US company pays to my corporation for the consulting services. US company has made me file Form W8-BEN and 8233(in order to not to withhold any taxes). My corporation also provides consulting services in Canada as well.

I just wanted to know, whether I want to worry about filing anything else in future with IRS?

I would appreciate your guidance in this matter.

Thank you

nelsona · Post by **nelsona** » Fri Aug 19, 2011 11:12 am

Nope. The firm is doing exactly the correct procedure. You do not have to file anything in US.

nelsona · Post by **nelsona** » Fri Aug 19, 2011 11:20 am

It is suggested that a corporation doing business in the US, even though not taxable in US by treaty, file a PROTECTIVE 1120-F return.

This is merely an information return where you tell the IRS that yes the firm did business in US, but NO, we don't owe any tax.

PROTECTS the firm against future questions.

nelsona · Post by **nelsona** » Fri Aug 19, 2011 11:26 am

It is suggested that a corporation doing business in the US, even though not taxable in US by treaty, file a PROTECTIVE 1120-F return.

This is merely an information return where you tell the IRS that yes the firm did business in US, but NO, we don't owe any tax.

PROTECTS the firm against future questions.