Canadian citizen on TN Management Consultant: Independent Contractor and Tax Filing

H

Hadrienlbb

New Member
Dear All,

I recently obtained a TN visa to work in the US, under the Management Consultant occupation, and as an Independent Contractor to the company I'll serve. This job is based in New York. In case it is worth clarifying, it was made abundantly clear to the immigration officer that I was to be a contractor as opposed to an employee, and he clearly expressed how this situation made his decision to approve my petition easier (he was training someone on that day, so I got to hear a lot about his thinking).

In general, I am confused about the overall implications this situation has on my tax obligations, whether in the US or Canada.

What I am most confused about, however, is the fact that I am an Independent Contractor, but it appears I am not allowed to be self-employed under TN rules. As a result, I don't know how I should bill "my client" (e.g. with or without sales tax), which form I should plan on filing to the IRS, what professional expenses I can expect to claim, or what health insurance I can seek to get.

I would very much appreciate some guidance or welcome your questions to help me untangle this situation.

Thanks!
 
Self-employment (allowed, as was obviously your case) is not the same as self-sponsorship (which is not allowed). Your client(s) is your sponsor.

Your tax situation, will depend on where you live and/or perform work. This is an immigration forum. Tax questions are answered at forums.serbinski.com
 
nelsona said:
Self-employment (allowed, as was obviously your case) is not the same as self-sponsorship (which is not allowed). Your client(s) is your sponsor.

Your tax situation, will depend on where you live and/or perform work. This is an immigration forum. Tax questions are answered at forums.serbinski.com
Click to expand...

Thanks Nelsona for such a prompt response. I will consult the tax forum you indicate.

If I may push my luck here though, does it mean that I should "create" a business that will then charge my sponsor/client?
That would imply I am allowed to create a business, which can only offer services to sponsor(s) I have a TN for, right?
 
You have effectively created a business now, as a contractor.
How you set it up is up to you. It could be corp-to-corp, or you bill then directly. That could depend on how the client wishes, or if you need some liability protection.

But all work -- and each client -- regardless of the setup, would need a sponsor and a separate TN for you.
 
nelsona said:
You have effectively created a business now, as a contractor.
How you set it up is up to you. It could be corp-to-corp, or you bill then directly. That could depend on how the client wishes, or if you need some liability protection.

But all work -- and each client -- regardless of the setup, would need a sponsor and a separate TN for you.
Click to expand...

My client doesn't care either way, although the Independent Contractor Agreement is in fact employing my services and not the ones of my hypothetical corp.

But my key takeaways here are that:

1) I can bill directly as an individual, and that's an acceptable way of conducting business (without the need for me to have a business #).

2) I can create a business/corporation, and that's legal under TN rules, so long as I only serve sponsor(s).

Please let me know if I have misinterpreted your information. I'm also reaching out to the community on serbinski as you suggested.

Thanks so much for sharing your time and expertise!!
 
Hadrienlbb said:
Dear All,

I recently obtained a TN visa to work in the US, under the Management Consultant occupation, and as an Independent Contractor to the company I'll serve. This job is based in New York. In case it is worth clarifying, it was made abundantly clear to the immigration officer that I was to be a contractor as opposed to an employee, and he clearly expressed how this situation made his decision to approve my petition easier (he was training someone on that day, so I got to hear a lot about his thinking).

In general, I am confused about the overall implications this situation has on my tax obligations, whether in the US or Canada.

What I am most confused about, however, is the fact that I am an Independent Contractor, but it appears I am not allowed to be self-employed under TN rules. As a result, I don't know how I should bill "my client" (e.g. with or without sales tax), which form I should plan on filing to the IRS, what professional expenses I can expect to claim, or what health insurance I can seek to get.

I would very much appreciate some guidance or welcome your questions to help me untangle this situation.

Thanks!
Click to expand...
Hey Hadrienlbb: I am in the same boat as you. Congrats on your TN and if dont you mind sharing you email, I would like ask you few more details on this independent contractor thingy as I am working on prepping a letter from recruiting agency for TN.
 
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