Canadian corportation contracting to US corp

[Grabba]

I've set up a Canadian corporation, this is in process of signing a contract with a US company (contracting firm) for me to do contract work in the US. They will be sponsoring me for a TN visa.

I'll end up having to spend more than 183 days a year in the US for this.

I can't set up simple US residence due to the fact that my family will remain in Canada and I will travel back every weekend. So I will remain a Canadian resident but I think a US tax resident due to the time spent in the US.

What will I need to file with the IRS and the CRA to stay legal and in compliance with everyone?

Also, will I need to provide the US contracting firm with a W8-BEN. Unfortunately they seem to be completely clueless of how this all should work.

[JGCA]

Since you indicate that you will be contracting your work through your Cnd corp for more than 183 days in the year then you will be deemed to have a permanebt eatablishment in the US. Your corp will need to file form 1120F pay tax to the US on profits then report this income on to Canada on a T2 and claim tax credits on the US taxes paid. A W8-Ben you speak of normally is given to the payor to exempt you from the 30% witholding tax they are required to withold from your company's invoices But this applies to non residents your corp will be a resident for tax purposes due to your stay of over 183 days so the witholding will have to apply, you still need to apply for a EIN number using form ss4 for corp tax filings and for the W8 Ben if you decide to eliminate the witholding tax of 30%.

In Canada you file the T2 for the corp, a T1 for your self ( you are still a resident of Canada) for the US a 1040NR for yourself .