Complicated cross-border tax scenario

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davesock
Posts: 4
Joined: Tue Mar 04, 2008 9:57 pm

Complicated cross-border tax scenario

Post by davesock » Wed Mar 05, 2008 3:13 am

I have scanned through many of the posts on this message board and found a wealth of very useful information. However, I was hoping someone might be able to help me with this more complicated scenario. Here are the major points:
• I am a Canadian citizen and resident
• I am the owner (100%) of a corporation in Canada which has been invoicing a number of U.S. companies for several years
• I am a partner (approx. 1/5th ownership) and officer of a newly created American C-corp
• I am to be remunerated for the work I have been doing for the C-corp, but how these funds will be disbursed has yet to be determined
• I currently travel to the U.S. about 5-8 days per month to conduct business related to the C-corp, but am capable of exclusively telecommuting if it will simplify and/or enhance my tax strategy

My questions are as follows:
1. Is it possible for me to invoice for consulting work (through the Canadian corporation) in this scenario to avoid having to go through the trouble of a creating a separate Canadian payroll?
2. If I must be treated as a Canadian employee, can my existing Canadian corporation fill the role of the “Canadian branchâ€￾ (assuming that the costs associated with the necessary restructuring of the corporation would be less than creating, operating and filing for an entirely new one)?
3. Would I need to file U.S. taxes in either of these situations?
4. How would expenses incurred within the U.S. be handled in these situations?

nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Wed Mar 05, 2008 9:17 am

You do realize that there is a tax forum for these Q's?
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

davesock
Posts: 4
Joined: Tue Mar 04, 2008 9:57 pm

Post by davesock » Wed Mar 05, 2008 12:07 pm

My apologies. I thought I was posting to the tax forum. I will repost to the correct area.

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