Complicated cross-border tax scenario

This forum deals with all aspects of immigration to the United States, including visa types, general immigration issues, and U.S. immigration topics.

Moderator: Jim Eiss

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

Complicated cross-border tax scenario

Post by davesock »

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
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You do realize that there is a tax forum for these Q's?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
davesock
Posts: 4
Joined: Tue Mar 04, 2008 9:57 pm

Post by davesock »

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