Canadian living in Canada working for US company

[wrxcat]

I am starting work with an American company based in the US and I am Canadian and will remain living in Canada and doing the work in Canada.

What option is best for me:

A) I own an incorporated company, so invoice the US company monthly for my work, they pay the invoice and then pay myself personally from my Canadian company as an employee ? (This is how I have been doing it on a smaller scale but now will involve more money annually)

B) Have them send cheques directly to my personal name for my work and pay tax on it accordingly?

C)Encourage them to hire me as an actual employee of their US company? (They do not currently have any Canadian employees. I would be the only one)

If you could let me know ASAP that would be great as I want to start doing things the correct and most beneficial way right from the start and they are going to start sending alot more work my way next week.

Thanks in advance.

[nelsona]

You cannot be an employee of the US company without them setting up Cdn payroll for you. The fringe benefits of a US comapny are useless for Cdn resident, so I would stick with getting paid as a contractor.

[wrxcat]

nelsona, Thanks for your reply. Yes it would be too much trouble for them for just one employee so I didn't think that was an option.

Is it still more beneficial for me to carry on with how I normally do it as described in my option A) below or should I just tell them to send cheques in my personal name as in option B) described below?

Thanks