TN Visa with Canadian Corp

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Mann
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Joined: Fri May 10, 2019 2:33 am

TN Visa with Canadian Corp

Post by Mann » Fri May 10, 2019 2:57 am

I have offer from a consulting big4 ready to hire thru prime vendor on hourly rate. This prime vendor staffing company in USA which will pay me a agreed hourly rate.

I am Canadian citizen with Canadian Corp. My plan is to work 4 days a week in michigan usa 3 days back to windsor Canada.. where my family lives. Kids n spouse

I want all money into my Canadian Corp so I can claim expenses. And want to pay canadian taxes only if possible as my family is here..

Q1 what should I ask the prime vendor to get TN Visa.. as a employee of my Canadian Corp? Do they give 1099 for my Canadian Corp? And a letter saying I meaning person me providing services? I am confused please list what shd i ask the prime vendor to get TN approval..

Q2 what will be tax responsibility of my Canadian Corp in USA? For me as a person in USA? Will I need a W2.. what would hiring prime vendor tell cra about my payment .. lost here

I want to pay all taxes in Canada via Corp and pay my personal income tax in canada..and want to tell USA that I my closer tie to Canada and will pay cra? Is this possible?if so How do I do so? Please explain

nelsona
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Re: TN Visa with Canadian Corp

Post by nelsona » Fri May 10, 2019 8:10 am

Depending on the type of work, you could simply enter n Business B1 status (since you reside in Canada), but you should be able get a TN as a contractor(or corp to corp) for the staffing company. You should NOT be an employee of the staffing firm. or you are considered a W2 employee, and subject to US and Michigan taxes, and FICA -- which would all be credited to you on your Cdn return, but these would be wages).

Now, to avoid self-employment tax in US, you would scrupulously need to avoid spending more than 183 days in ANY 365-day period in the uS. To exceed this at any time would create a Permanent establishment, making your income taxable in US.

So you will need to keep and closely monitor a calendar and take time off so that you do not exceed this timeframe at any point.

As tpo corporation, you will simply file a "protective" 1120-F corporate return in US, exempting your corp from US tax.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Mann
Posts: 4
Joined: Fri May 10, 2019 2:33 am

Re: TN Visa with Canadian Corp

Post by Mann » Fri May 10, 2019 9:50 am

Thankyou nelsona.

I want it to be TN visa as i will be working in USA Implementing and managing project life cycle. not just B-1(business meetings etc.)

If i will make sure i stay less than 183 days.
My questions:
What documentation would i need from staffing company? for contractor(or corp to corp). so my TN visa is granted[ I am confused please list what shd i ask the staffing company to get TN approval].

As you said i should NOT be a employee of staffing firm.so i could just invoice the staffing firm and get paid in my Canadian corp Canadian acct via wire? or this Canadian company needs to open US bank account?

I understood for reading online a 1099s or some 1099 will be needed for my corp,when will i request and what it is exactly i need?

What is TPO corp?

Sorry for so many questions i amnot clear and reading other forums make it more confusing.

nelsona
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Re: TN Visa with Canadian Corp

Post by nelsona » Fri May 10, 2019 10:06 am

"As to corporation....." tpo was a typo.
The staffing company should be getting the TN ready for you. You will need to take to the border what the firm gives you, along with whatever credentials are needed for the TN category you are applying for. Please do some research on TN requirements elsewhere.

1099's are issued at year end by the payor for payments you recieve, that is their responsibility.

You can invoice them corp to corp, which is easiest. Payment method and bank is unimportant. they may require a US bank, which is fine.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Mann
Posts: 4
Joined: Fri May 10, 2019 2:33 am

Re: TN Visa with Canadian Corp

Post by Mann » Fri May 10, 2019 10:29 am

Thanks, your really very help full.
I will research TN requirements else where.

Finally If for some unavoidable reason, i am more than 183 days in US, can i claim i am close to Canada since my family lives in Windsor?or more than 183 will complicate it completely.

nelsona
Posts: 15980
Joined: Wed Oct 27, 2004 2:33 pm
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Re: TN Visa with Canadian Corp

Post by nelsona » Fri May 10, 2019 11:01 am

Closer connection only works for less than 183 days.

You will still be non-resident even if you stay the whole year in US by treaty, but for the income generated by your business, exceeding the 183 day per 365 period will require, by treaty, taxation in US on that income on a 1040NR, as well as in Canada.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Mann
Posts: 4
Joined: Fri May 10, 2019 2:33 am

Re: TN Visa with Canadian Corp

Post by Mann » Fri May 10, 2019 11:31 am

I did my research on TN requirements. Every one mostly says the TN letter should say your employed occupation for this time and money by the Staffing firm.
But my case will be US corp to Canadian corp and i will get paid internally from my Canadian corp. How would this come in the TN letter any experience on this? have you seen such a letter,, This will help a lot and clear my confusion.

Thanks for making my understanding so clear on this issue with all answers before.

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

Re: TN Visa with Canadian Corp

Post by nelsona » Fri May 10, 2019 11:44 am

just change the "employee" to providing services, paid on a corp to corp basis. The firm has to come up with it.
I will leave it at that.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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