US company wants to use an ind. contractor from Canada

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webcite_99
Posts: 46
Joined: Fri Feb 18, 2005 8:45 pm

US company wants to use an ind. contractor from Canada

Post by webcite_99 » Thu Mar 27, 2008 2:55 pm

US company (LLC) wants to use an independent contractor who resides in Canada and is a non US citizen. All work will be done remotely from Canada. Contractor already has a SS#.

For a US based independent contractor the company would be required to fill out a form W-9 and the company would then issue a 1099 at the end of the year.

Assumptions and Questions:

1) Do we have the contractor fill out a W-8BEN and have select a 0% withholding?
2) Form W-8BEN: Part II/number 10 -- what provision of the Articles should be cited? what is the reason the person meets the terms?
3) Once filled out, is it safe to assume that the company does not need to withhold any money from any payments if 0% is selected? (there is something about the 30% requirement, but I am assuming that the W-8BEN and the treaty is the way around this)
4) at the end of the year, what if any documents need to be filed with the US govt by the company?
5) at the end of the year, what if any documents need to be sent to the contractor from the company?
6) at the end of the year, what if any documents need to be filed with the Canadian govt by the company?
7) at the end of the year, what if any documents does the contractor need to file with US govt ?
8) at the end of the year, what if any documents does the contractor need to file with Canadian govt ?

Thanks in advance.

nelsona
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Post by nelsona » Thu Mar 27, 2008 3:40 pm

I'm quite sure an accountant would be able to help out this firm.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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