Canadian IT Contractor TN work in US - best tax approach

Sujane80 · Post by **Sujane80** » Fri Jan 09, 2015 6:16 pm

Even if someone is an owner of a Canadian corporation, it is best to work in the US on a TN as an individual and have taxes deducted at source then file a NR tax return these days with all the complications of going through a corporation and the tax rules that apply to that? The person working in the US would have strong ties to Canada and will not likely be in the US for more than 6 months.

nelsona · Post by **nelsona** » Fri Jan 09, 2015 6:50 pm

The problem is that by doing this, you are subjecting both you and your client to high payroll taxes that neither of you would have to pay if you were a simple non-resident contractor.

the fact that taxes are withheld or not is unimportant. You can always forward taxes quarterly (btw, you would not even be taxable in US under the cons=ditions you describe).

I would be going the contractor route and filing the minimal corporate tax from.

Sujane80 · Post by **Sujane80** » Fri Jan 09, 2015 6:57 pm

Ok so a W-8BEN or W-8BEN-e? I understand that now a Canadian corp has to use the W-8BEN-e or am I wrong.

nelsona · Post by **nelsona** » Fri Jan 09, 2015 7:14 pm

Sure.

Sujane80 · Post by **Sujane80** » Sat Jan 10, 2015 2:57 pm

So which is it? Thanks.