US/CAN resident living in CAN, wanting to open US Business

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US/CAN resident living in CAN, wanting to open US Business

Post by erythrocyte » Fri Feb 23, 2018 10:56 am


I'm a physician who practices in the US (W2 employee) but lives in Canada and hold dual US-Canadian residency and am subject to resident taxes by both countries' respective immigration and tax laws. My spouse is Canadian (not a US resident - although she may become one down the road).

I'm currently considering how to best structure some moonlighting independent contractor work as a physician in the US on weekends - (professional liability paid for by hiring company) - and was wondering if an S-Corp vs. LLP might be a better option than just being a Sole Proprietor - tax wise under the US-Canada Tax Treaty as well as from an asset protection angle. I've read that LLPs are structures that are favorable under the treaty but wasn't sure about the S-Corp. As a Sole Proprietor I guess one could get really good umbrella insurance to indemnify assets.

Would an LLP make sense - wife is also a physician - but hasn't started practice yet - she is recently trained & licensed in the US and is looking for part-time jobs across the border in the US.

In the long term future we would like to have a clinic in Canada as well. Credentialing in Canada will take its own sweet time.

Anticipated gross household income in 2018 is <$315,000 - 415,000 - was hoping to take advantage of the 20% QBI under the Tax Cuts and Jobs Act (TCJA) for the side-gigs.

Any help would be appreciated.


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