W2 or Corp-to-Corp on TN

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usacanuck
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Joined: Fri May 25, 2012 1:23 pm

W2 or Corp-to-Corp on TN

Post by usacanuck » Fri May 25, 2012 1:28 pm

I'm a canadian citizen. i am going to start working in the usa soon on TN visa. i have the option of W2 or corp to corp. i currently don't have a company setup in either canada or usa. i want to know whether i should do w2 or corp to corp for working in the usa on TN visa. are both options available for canadian citizens on TN?

nelsona
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Post by nelsona » Fri May 25, 2012 1:37 pm

Both are viable.

I would base my decision on 2 factors:

1. If you are going to continue to live in Canada (and maintain residential ties) you are better off being contractor (corp to corp).

2. If yo uare going to live in US, then employee is the better option, as you wil lahve benefits.
You should be compensated at least 40% more corp to corp than as an employee, due to no benefits being paid for you, and no payroll taxes.
Nelsona Non grata. Non pro. Search previous posts.

usacanuck
Posts: 3
Joined: Fri May 25, 2012 1:23 pm

Post by usacanuck » Fri May 25, 2012 2:15 pm

thanks for the quick reply nelson! i'm not planning to maintain residence in canada but i am still considering corp to corp - my real question is can i setup a company in the usa on a TN visa or am i stuck with w2 being on TN? i'm not planning to setup a company in canada as i will be living in the usa.

nelsona
Posts: 15618
Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona » Fri May 25, 2012 2:45 pm

Re-read what I said: BOTH are viable.

If you become contractor living in US then you need insurance. medical and perhaps professional. You will also be paying large Self-employment tax, so make sure you get a bucket-load more money.

You are really becoming self-employed. You don't need corporatrtion for this. It depends on liability.
Nelsona Non grata. Non pro. Search previous posts.

usacanuck
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Joined: Fri May 25, 2012 1:23 pm

Post by usacanuck » Fri May 25, 2012 3:43 pm

Makes, sense. thanks so much!

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