Working remotely vs. setting up a US corporation

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neilk
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Joined: Thu May 16, 2013 5:57 pm
Location: Vancouver, Canada
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Working remotely vs. setting up a US corporation

Post by neilk »

I'm a Canadian citizen, a programmer who worked in the USA from 2005-2012 on work visas. In 2012 I returned to Canada, with the expectation that I would wait a year to reset my visa status, and return to work in the States for an American company.

However, I'm starting to think it would be better to remain in Canada, but most of my business will still be in the USA.

Over the next year I expect I will be doing all of the following activities:

- Consulting with American companies
- Activities that require American business presence (crowdfunding or publishing apps in Apple's stores, for instance)
- Visiting the US for conferences and business meetings.

I just did a first contract under a simple arrangement, where I filled out a W8-BEN for myself as an individual.

But, going forward, is it better to form an American corporation (e.g. a Delaware corp) and then have myself as the employee? That way I can bill my American clients, and also do other activities under the same name?

Or is that worse? Will I have corporate tax in the US and then income tax in Canada?
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