Questions on US Consultancy

[kay_dee]

Hello All;

I am a Canadian Citizen living in BC. I have been offered a consultancy position in New Jersey, USA. I have been given the option of being a W2 employee (for the recruiter that landed me the job) or a “corp-to-corpâ€￾ – meaning I would create a BC/Canadian corporation and bill my services to the recruiter.

My questions;

* Is it better to be a corporation working in US or an employee?
* Am I responsible to IRS for income earned in US if I am a Canadian corporation? What kinds of rates am I looking at?
* Can I hire my wife as a “receptionistâ€￾ or “assistantâ€￾ for my corporation, and pay her? Would she need a Visa to accompany me to the US as an employee of my corporation?
* Is it better to be BC based or Ontario based corporation?
* Can you tell me pros vs. cons of W2 versus Corp to Corp?
* What can I legitimally deduct as a W2 versus Corp to Corp?
* What kinds of records/receipts do I need to retain for a corporation? Bookkeeping, etc.
* I know that there is a per diem for W2 employees; is there anything similar to that for corporations, or employees of a corporation?
* Do you know under what terms/conditions I would be eligible for per diem as a W2 employee?
* Would per diem affect my Canadian taxes if I apply to be declared a non-resident citizen?


…kuldip