US Citizen - PR of Canada - Controlled US Company Income

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
kingjulien
Posts: 5
Joined: Sat Oct 09, 2010 5:46 pm

US Citizen - PR of Canada - Controlled US Company Income

Post by kingjulien »

My wife & kids are dual citizens (CA/USA) and we are planning to move to Canada. I am USA citizen and will be a permanent resident of Canada. I have a US S-Corporation that I own 100% that generates 60K income in salary with no employees. All the work can be performed from Canada and I will visit clients twice a year (no work performed in USA). Should I convert the S-Corp to an LLC or C-Corp for ease of filings and paperwork? I need a limited liability structure, so that is the only two options. Is the best way to be self employed in Canada, establish a Canadian payroll system (CPP only / EI not needed) and bill my US company for services provided? Is there a problem that I own the company (not arms length)? And is there any benefit for paying part of the income generated by the US company in dividends (pay reasonable salary first-then rest in dividends)?
Post Reply