Canadian working in Canada for US Company

[Tenwesten]

Hi,

I was wondering what would be the correct way to be paid as a Canadian citizen working in Canada selling software for a US based company. I will reside in Canada and work in Canada, selling the software to Canadian busineses. The software company does not have any Canadian employees and no office in Canada.

I am in discussion about this opportunity right now and hope to make this process simple for them as to not deter the employment.

Do I work as a subcontractor and invoice them by setting up a company here in Canada?

Or do they setup a Canadian payroll service and make all the necessary deductions and pay me as an employee?

The position is commissioned based and I will have a home office. So the creation of a business may make sense for me as I could right off expenses under a business such as my office, car, phone, etc. Is this legally sound?

Also if I was able to sell to a US company from Canada would this still apply?

[nelsona]

Setting yourself up as a contractor makes most sense. The firm will likley balk at setting up payroll just for you, and your benefits aren't likely to be very good.

[JGCA]

Don't forget to register for GST HST and/ or TVQ