I am a U.S. citizen/resident (but dual Canadian citizen) and also run a Delaware C Corp.
A Canadian company is interested in engaging me or my company on a consulting project based in BC. The amount will be paid in Canadian dollars.
From the perspective of cross-border taxation / withholding for me or for my company, is there an advantage or disadvantage in the Canadian company engaging me directly, versus engaging my Delaware C Corp?
Thank you!
Subcontracting for a Canadian company
Moderator: Mark T Serbinski CA CPA
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Re: Subcontracting for a Canadian company
Just to be clear, the Canadian company is based in BC and will be doing the consulting work in BC.
However, as its subcontractor, I or my company will be performing the work in the United States. Neither my company nor I have any permanent establishment in Canada.
However, as its subcontractor, I or my company will be performing the work in the United States. Neither my company nor I have any permanent establishment in Canada.
Re: Subcontracting for a Canadian company
There is no difference for cdn tax purposes. Since you do not have establishment in Canada, you will not be taxed there.
So, you just need to determine which is better for US taxes, which any US tax forum can probably help you with.
So, you just need to determine which is better for US taxes, which any US tax forum can probably help you with.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Subcontracting for a Canadian company
Sory, I me=issed the subtlety about preforming work in BC> If you spend more than 1/2 your time in Canada over a year period, the work will be taxable in Canada, regardless of how you are paid.
Watch/count your days in Canada, and sty below 50% and you will only have US taxes on this income.
Watch/count your days in Canada, and sty below 50% and you will only have US taxes on this income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing