Business in Canada

[shyboy]

I am living in USA on a Green Card status.

Have a client in Canada, who sends me payments at least twice a year.

What is the best way to get that money in order pay Lowest possible tax.

as an independent contractor'? or should I register a company?

thanks

[nelsona]

First, the money should not be taxable in canada. If the client applies some form of non-resident withholding, you would get it back by filing at the end of the year.

In, US, this is considered self-employment income, so is liable for income atx, as well as both halves of FICA.

Wether setting up a company and paying yourself a salary or dividend from that company would be worth it, I haven't the foggiest.