TN as Self-Employed

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Aulex
Posts: 11
Joined: Thu Aug 19, 2010 7:49 am

TN as Self-Employed

Post by Aulex »

Reading all the regulations I understand that getting TN as Self-Employed is tricky but still possible per this Quote:
[i]"The TN applicant does not have to be an employee of the U.S. company on a strict "W-2 form" basis. Proof of prospective remuneration for the services rendered (e.g., a letter from the U.S. "employer") should be sufficient.
(1) Documents Necessary to Prove Requirement
• Letter from U.S. employer stating the amount of the remuneration to be paid to the applicant "[/i]
Self-Employed person would have a contract with US Company on per-hour basis only as sub-contractor and will be sent to various client sites when the actual job comes in.
1. So is this possible in such scenario to have a letter from US employer explaining terms of business relationship and per-hour rate and then successfully apply for TN (assuming other requirements are met like education etc.)
2. Second question would be more about taxes but I would appreciate if somebody can clarify. I understand under the treaty he would be exempt from US taxes unless has fixed base in US. So wouldn’t such relationship with US employer be considered as having an office in US as per:
“The Canadian individual could be deemed to have a permanent establishment in the U.S. if: He has an office in the U.S.; or[b] He uses the services of an agent in the U.S. who has independent authority to enter into contracts on behalf of the individual.â€￾[/b]

Thank you!
nelsona
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Post by nelsona »

Again, please quote source of any citations.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Aulex
Posts: 11
Joined: Thu Aug 19, 2010 7:49 am

Post by Aulex »

http://www.grasmick.com/nafta.htm

[i]"The TN applicant does not have to be an employee of the U.S. company on a strict "W-2 form" basis. Proof of prospective remuneration for the services rendered (e.g., a letter from the U.S. "employer") should be sufficient.
(1) Documents Necessary to Prove Requirement
• Letter from U.S. employer stating the amount of the remuneration to be paid to the applicant "[/i]
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

From a tax point of view, it would appear that you would faceUS taxation regardless of status.

As to the TN letter and application, it might be wise if you apss this thru a lawyer before crossing, since the fact that your contract with sponsor would be intermittent, CBP might require you to have client-sponsorship, rather than agency. Most clients balk at this.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Aulex
Posts: 11
Joined: Thu Aug 19, 2010 7:49 am

Post by Aulex »

Thanks - now I am getting closer to understanding the whole picture and requirements. So there is no need to mess with incorporating and being sole-proprietor (self-employed) with doing all paperwork under your personal name should be fine then. Right?
Regarding client sponsorship vs agency - does this have to be specific contract mentioning term and amount paid at the job completion? Versus with the agency they are just writing how much they would pay you in general while there is no actual job at the moment.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The only big reason to incorporate would be for liability purposes.

The client letter would mention the ralationship between you-them-agency, as well as whet they would pay the agency.
This is probably where the client doesn't want to deal directly with you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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