CDN Consultant in USA on TN for over a year

korazy · Post by **korazy** » Mon Nov 05, 2012 1:01 pm

I am a CDN, and I own a CDN corporation with 5 employees. I am in the USA with a TN visa for 2 years. I am living in the USA full time do consulting work for a USA company (onsite). The USA company is paying my CDN company for my services. My CDN company pays a salary to me and dividends. I will be returning to Canada for a few 1 week trips back home, but otherwise I am full time in the USA.

As a CDN corporation, what do I need to file with IRS?
As an individual, what do I need to file with IRS? Revenue Canada?
The USA company, what do I need to provide them for tax related? 1099 and W8?

ikeaidea · Post by **ikeaidea** » Mon Nov 05, 2012 3:17 pm

For US side,

Your canada company, 5471 Form, TD F form

Your personal, 1040, TD F

You fill out w-9 to US company.

But I bellive US company should pay salary to you directly based on your TN Visa.

korazy · Post by **korazy** » Mon Nov 05, 2012 10:48 pm

So if a USA company hires a consultant from another country that requires to be on-site, what visa type should the consultant have?

nelsona · Post by **nelsona** » Tue Nov 06, 2012 10:41 am

That is an immigration question.

JGCA · Post by **JGCA** » Thu Nov 08, 2012 10:20 am

Your CND corp will be considered as having a permanent establishment in teh US so you need to file for the corp an 1120F. Any tax paid in the US will be taken as a tax credit on the CND T2 of teh corp. Note since the income is coming from the US it will not be treated at the small business tax rate in Canada, also note if you are the controlling shareholder and you now reside in the US you are no longer a CCPC meaning no income even CND source get the small business tax rate. You also may have a deemed disposition of the shares on leaving Canada unless you demonstrate that you are still a Canadian Resident therefore you will file a 1040NR to show the US income and a T1 showing all your income to Canada. The problem you may have is if you are a US resident you have to have disposed of all your company shares upon leaving Canada this may result in a deemed dividend unless your shares have little value.