Hi- I may start work soon for a US company while living in Canada, with frequent visits cross the border.
1. Do all of the regulations for Cdn citizens apply to me as a PR? I know that as a PR, I cannot apply for TN, for example. Is there anything else that is restricted as a PR?
2. What would be the best setup in terms of taxes?
Incorporate in Canada and have a corp to corp contract, or
have a sole proprietorship and get paid directly?
3. I currently have a B1 visa. For travel to US for meetings, what must I present to the immigration officer at POE? It seems like I have to show that I'm going on business to a company that I get paid to work for, but am not physically at work there?
4. As a consultant, is temporary work on site @ company absolutely not allowed with B1? The company would likely sponsor H1B, but not sure how long this will take.
Thanks for your help.
Canada PR residing in Canada working for US firm
Moderator: Mark T Serbinski CA CPA
Re: Canada PR residing in Canada working for US firm
I am in somewhat similar situation and I have following comments:
#1: Except for the Visa Waiver and TN privilege, I think all the taxes, and employment rules are same for Canadian Citizen and Canadian PR.
#2: Incorporating would be more work, as you have keep track of all your business assets separately and also file taxes separately. Sole proprietorship is relatively simple.
#3: Not sure, but love to hear your experience when you travel on B1.
#4: For H1B I think you have to be employed by the US Company. I don't know if H1B can be used for occasional visits. Rules regarding Temporary work on-site using B1 is vague to me, I know established foreign companies often send their employees to US on B1. I am sure they invoice US company for the hours worked by their employees in B1.
I guess the only thing is the employees get salary from the foreign company and not directly from the US company. In a way, the US company is paying for the services done under B1. I wonder why the same concept cannot be applied to Sole Proprietor.
#1: Except for the Visa Waiver and TN privilege, I think all the taxes, and employment rules are same for Canadian Citizen and Canadian PR.
#2: Incorporating would be more work, as you have keep track of all your business assets separately and also file taxes separately. Sole proprietorship is relatively simple.
#3: Not sure, but love to hear your experience when you travel on B1.
#4: For H1B I think you have to be employed by the US Company. I don't know if H1B can be used for occasional visits. Rules regarding Temporary work on-site using B1 is vague to me, I know established foreign companies often send their employees to US on B1. I am sure they invoice US company for the hours worked by their employees in B1.
I guess the only thing is the employees get salary from the foreign company and not directly from the US company. In a way, the US company is paying for the services done under B1. I wonder why the same concept cannot be applied to Sole Proprietor.