canadian contractor working for Canadian Company from US

dandushka · Post by **dandushka** » Mon Feb 04, 2013 2:38 pm

hey there

I live in the US on a TD visa. My husband works here on a TN visa. My previous canadian company is willing to let me telecommute.

They are not interested in the hassle of contacting a tax accountant and sorting out my US payroll and tax withholding needs.

They want to hire me as a contractor and believe that as such, I would be the one to deal with tax issues.

Is this possible? Am I allowed to live in the US and work as a contractor for a canadian company?

many many and many more thanks for any information offered.

nelsona · Post by **nelsona** » Mon Feb 04, 2013 2:41 pm

Yes. However, that Cdn firm must have no US ties, and must not be benefitting form your presence in US (ie. contacts, resources, etc that would only be available to you in US).

dandushka · Post by **dandushka** » Mon Feb 04, 2013 2:48 pm

the company has no US ties, and definitely is not benefitting from my presence here.

So, to clarify, they won't be doing any US payroll or withholding. They will just give deposit money into my canadian bank account.

That sounds dodgy. What do I need to do on my end as a contractor? I've never had a contracting job before, I don't know how it works.

If I were telecommuting out of canada, I would create a business and pay myself a salary.

But I am pretty sure I'm not allowed to start a company and pay myself a salary in the us, with no work authorization. I know I can start a company, but I cannot pay myself a salary.

Could you please provide some more details?

many thanks!!

nelsona · Post by **nelsona** » Mon Feb 04, 2013 3:10 pm

You have 2 issues. Immigration and taxation.

As long as you keep the relationship between you and the Cdn client/employer, you will be fine (as long as you meet the criteria I described above).

You should speak to an immig lawyer to see if they think it is legal or not.