Dual US/Canadian opening consulting biz in Canada
Moderator: Mark T Serbinski CA CPA
Dual US/Canadian opening consulting biz in Canada
I am a dual US/CAN citizen recently resident in CAN (Montreal). I am starting a small consulting business with clients mainly in the US who would prefer to pay and deal with a "US" company. But I would like to create a CCPC in CAN for tax and benefit reasons. Can i register the CCPC in the US (i.e. obtain an EIN) and just submit a form W8-BEN to my clients? As a US citizen, will my CAN corporation be labelled as a CFC subject to "subpart F" income and additional reporting in the US? I don't plan on having a "permanent establishment" in the US and all work will be done in Canada. What's my best setup?
YOu can get a EIN number for teh corp even if its a CCPC.
As a USC you have many reporting requirements to teh IRS regarless of whether the corp does business in US or Canada, not necessarily tax to pay but always reporting.
If you think that the CCPC will pay the samll business tax rate on US source income it will not, it has to be earned in Canada to qualify.
You will need to file many tax returns including the 1120F,and others ( read my posts on previous posts where I spell out teh most common ones)
As a USC you have many reporting requirements to teh IRS regarless of whether the corp does business in US or Canada, not necessarily tax to pay but always reporting.
If you think that the CCPC will pay the samll business tax rate on US source income it will not, it has to be earned in Canada to qualify.
You will need to file many tax returns including the 1120F,and others ( read my posts on previous posts where I spell out teh most common ones)
JG