Cdn contractor in USA

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Cdn contractor in USA

Post by llebmj » Tue Feb 20, 2018 10:02 am

I am a Cdn resident with my own Cdn company that I use for contracting purposes.
I have the opportunity for a 12 month contract in the USA. I would travel back back and forth and remain a Cdn resident.
I have the choice of being a contractor for the US company or my Cdn company being a contractor for the US company.
I understand that I would be in the US for more than 183 in 12 months which means a PE in the US and subject to US taxes.
Is the following correct for the 2 options:
1. Personal contractor, the US company would withhold, I would then file a 1040NR and then claim foreign tax credit on Canadian T1.
2. The Cdn company is the contractor. The US company would withhold. The Cdn company would file a 1120-F, and the Cdn company would then claim the foreign tax credit on its Cdn T2.
Is this correct? Am I missing something here?
What would be the withholding rate?

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