How can I be qualified for the Canada non-resident status?

[ottawa]

Hi,

I have been reading through so many posts trying to find my answer. But I couldn't.

I am a Canadian citizen, and I want to work in the US. My long term goal is applying for the green card and live permanently in US. So I want to get a non-resident status of Canada, which I have to break all my Canadian ties. The problem is I own a consulting corporation in Canada, which has relatively big profit. If I close it, I would have to pay the remaining money as dividend to me which I will have to pay large amount of income tax. My question is: Can I make this corporation inactive? So it will retain all its profit while I am in the US, and when I retire, I can take money out as my salary from this corporation. If this is not possible, what are my possible options?

Also if I am deemed to be a Canadian resident, I understand I have to pay Canadian tax as well. Do I only have to pay the Canada federal tax or provincial as well? My friend told me that he only paid the federal tax to Canada. And really there is not too much a gap between US and Canada federal tax rate.

I appreciate all your insights and opinions.

Thanks in advance

[nelsona]

To "break" Cdn tax residency when you move to a treaty country like US, all you need to do is establish MORE ties in US than in canada.

So, merely living and working in US, and not in canada, will suffice.

Of course, any potential move to US requires a job first.

The corporation will always be taxable in canada first, regardless of your tax residency.