Doing business in Canada - H1B in US PR of Canada

**Jaggy** · 19th December 2004, 02:18 PM

does anyone have any information about doing business in Canada if you have a PR card and you are in the US on an H1B visa. Like run a business in Canada and travel back and forth to the US from Canada. Would really appreciate if someone is currently doing this.

**bhand11683** · 20th December 2004, 12:27 AM

u could open a business in canada and operate in Canada only. Even if you have H1-B you cannot do any part of your business in US

**aquagemini** · 20th December 2004, 10:27 AM

Businesses opened (registered) in Canada can be operated globally and being on H1B just means that the visa beneficiary can not earn from anyone other than the current (US) employer but of course you can maintain, operate and earn from a business located in you home country or country of permanent residence (ie, working for yourself). And as long as you maintain tax status in one country and declare your global income your are allright. However for canadian PR, to the best of my knowledge one must file taxes in Canada! And for H1B paypacket you must do the same in the US. Its kind of oxymoron is'nt it?

**Jaggy** · 20th December 2004, 03:05 PM

Yes my intention is to start a business in canada and keep it strictly there and have someone run there. My income would be in canada only and would not bring the same to US. Would pay taxes for H1B job in US and would also pay taxes in canada for business is that possible?. want to keep it clean totally

**bhand11683** · 20th December 2004, 03:10 PM

Lets put it in a simple way

Where ever you are a "resident" of or you claim to be a resident of, you have to pay tax on your world income in that country. If you are an h1-b that means you are a resident of US, you will have to show all income etc. on your 1040 and if you also claim your residency of canada then you will take all your income (including US salary, all bank statements etc ) on your canadian T-1 (including any canadian income if any) , claim foreign tax for taxes paid in US and pay any tax (if remaining to Canada) .

There is no easy or clean way of doing things. There is only 1 right way of doing things . It does not matter whether you start a business in canada or not , if you do , you are taxable on your canadian business income in canada and also US (under foreign income ) ..

**aquagemini** · 22nd December 2004, 08:29 AM

I agree with above but its not as difficult as it sounds. There is a tax treaty between US and Canada as well as (if you are from) India. All taxes on the money earned in Canada or India can be paid in US. However this will leave out maintainance of PR status in Canada. There is no easy way out.