Canadian moving to US working remotely in US for Canadian Company

[kmaddela]

My husband moved to NY from Toronto back in May 2018. I just received my SSN and EAD and have been travelling back and forth to the US on an E2 Visa. I am planning on moving to NY by the end of the year and plan to start working. We both plan on declaring non-resident status in Canada.

Work/Tax Question:

I was presented with an opportunity with my current employer in Toronto to work remotely from New York. We've had conversations and they are willing to either continue to pay me as is today (to my Canadian bank account) or pay me as a contractor, which would require me incorporating a business either in the US or Canada.

1) Is this a possibility?

2) Would you be able to help me highlight the tax implications of both scenarios and let me know if any one of these options would be best for my husband and my situation, and would not impose any tax consequences.

3) What are the steps we need to file at the end of the tax year?

I appreciate your time.
Katherine

[nelsona]

They cannot continue to pay you as a Cdn employee. they would either need to set up an NY payroll, or pay you as a contractor.
There may be danger (tax, reporting liability) for them to set you up as a NY employee, so contractor would be best, given you have an EAD.

The decision to be an employee or contractor would depend on whether you can get cheap medical insurance. If your spouse is on E1, I suspect he is not an employee either, so that may be difficult.

If you decide to incorporate for this purpose, it would be a US based corporation.

[kmaddela]

From my understanding below, as long as I incorporate my self in the US as a contractor my company can be invoiced for my services. Therefore, there will be no tax implications.

I am under my husbands E2 visa as a spouse, so his company does have benefits.

[nelsona]

You or your corporation can be invoiced. If you incorporate you will have US corporate tax to deal with, as well as personal tax.

I'm not sure what you mean by "no tax implications".

As for residency, your spouse can declare as of May 2018, you can declare based on the date you leave.

[kmaddela]

I think what I want to ensure is that my husband and I won't have to pay taxes in both Canada and the US, by choosing to incorporate myself in the US.

[nelsona]

Why would you have thought that. You would have had that if you incorporated in Canada.