Hello,
This forum has clarified many issues for me - but Have one more question...
My husband & I are both Canadian citizens - My husband is being transferred to the US on an L visa. The kids & I will follow him in the summer and will have an L2 status.
Me, as his wife, will have a L2 status & a SSN number. Currently, in Canada, Im an IT consultant - with 100% shares in my corporation (####### Ontario Limited corp).
Upon our transfer to the US - I am interested to continue working, on consulting basis, for the company I currently do, them paying me to my canadian corporation bank account - and me drawing salary... I understand that I will have to pay taxes (both corp & personal) "Canadian" style ... but How does that impact my US income tax ? if at all ...
If I work for the canadian company - I will not seek employment in the US - so my income tax in the US will be NIL..... ?
Looking forward hearing your opinion about this pickle... : )
Canadian IT consultant corporation - Tax Implication for US
Moderator: Mark T Serbinski CA CPA
If you intend to become a US resident than you will no longer be a CND resident for tax purposes you need to file a departure return when you leave Canada and will be taxed on teh FMV of the shares in your private compnay basically the amout in retained earnings will have to come as to you as a dividend. You could use this comp while you are a US resident but you no longer ar CND controlled you loose the small business tax rate and any pmts to you are subject to witholding tax which when you file a US return you get credit for this. Its too complex beter to close it down, if you intend to be still a CND resident then you file the corp as usual but also file Canadaian pers tax returns as usual .
JG