Working from the US for a Canadian client on E-1S status

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iht
Posts: 3
Joined: Sun May 08, 2022 1:54 pm

Working from the US for a Canadian client on E-1S status

Post by iht »

I plan to move to the US on E-1 owner/principal trader visa in Jul 2022. As soon as or before I move, is it better, from taxation point of view, to open a US corporation and have our existing contracts between our Canadian corporation (which we have to maintain for ever to adhere E-1 visa rules) and US clients changed to this US corporation and collect US revenues into this corporation? Or Should I do this next year?

If my spouse, who will move with me on E-1S (E-1 spouse status), would like to work from the US for one of her Canadian clients on C2C, do we need to pay tax only in the US for work performed from the US? Is it better to sign the C2C contract between the Canadian client and our Canadian Corporation or US Corporation?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Working from the US for a Canadian client on E-1S status

Post by nelsona »

ISince she will live in US, \t is always better to have the income come to the corporation where you live, as this will avoid Cdn taxation altogether.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
iht
Posts: 3
Joined: Sun May 08, 2022 1:54 pm

Re: Working from the US for a Canadian client on E-1S status

Post by iht »

Hi Nelsona, One follow up question on your answer. When I checked with with Canadian banks in Canada, none of them open CAD business accounts for US registered entities. They expect the foreign entity to register in Canada. How do we go about collecting CAD payments from our Canadian clients against our US LLC then?
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