Hello Ladies and gentlemen,
I've searched these forums high and low and unfortunately have not seen a response that would answer my questions below...
My scenario:
I just recently lost my [contract] position. That position was dissolved at the current employer. I have been looking all across US and Canada for work for past 2 months. So the following seems like my only option right now which is why I'm even considering it.
A US employment agency is hiring me for (just shy of) 6 months assignment. They INSIST I open a US corp so I can be paid 'corp to corp'. I already have a CDN corp which they won't accept just to make taxes and payroll easy on themselves. They are willing to sponsor me with a TN Visa for said position which I am eligible for.
1) If I open a US corp so the agency can pay me through it, can I then further pay myself to my CDN corp? If so, how? I have TD Bank account. I can link the two accounts once I make one in US for this agency's payroll. Then what? How can I actually show this on cdn tax return as a payment to my CDN business?
I will be physically present in the US during this entire assignment. Reason I want to go 'corp to corp' instead of W2 is because I have a family + mortgage in Canada and I am responsible for my own accommodations in the US so, that is double expense for me (I.e Cdn mortgage + US rent). So I would like to write-off as many expenses as possible.
I have called a few accounting firms for their free consultation; either they are unfamiliar or don't want to say anything useful without a fee. Normally i wouldn't mind paying but the fee is too large. Cheapest being $200+ per half hour!!!!! (Wife lost her job recently and we found out shortly after that we were pregnant and she is having difficultly finding work now. So I can't be 'shopping around' with those kind of fees. Our EIs are barely covering us as it is with savings depleting fast. First time in my life I've had to use EI.)
2) I've found that it is easiest to open a corp in Delaware even though I will be employed in a different state. Is this true?
2b) Is it fairly easy for a Canadian to open a US corp?
3) How to file taxes/expense reports in the US? I purposely requested the assignment be less than 180 days (just shy of 6 months) so that I can avoid being taxed in the US. Is this even possible?
I can just pay taxes in Canada. I know how to do the expenses here, etc. under my cdn corporation.
4) Is 1099 better for me than corp to corp? I dont particularly want to do W2 as it will pay me much less and I can't write stuff off. With W2 I will be barely breaking even with my cdn mortgage + US rent and living expenses.
I apologize for the long post. It's past 4 AM and I haven't gone to bed yet! I'm just really stressed out and feeling inadequate that I am unable to look after my family. And it's my first baby.
I wish you guys can share your experiences and advise on what you feel is best for my situation.
Thank you!
I've searched these forums high and low and unfortunately have not seen a response that would answer my questions below...
My scenario:
I just recently lost my [contract] position. That position was dissolved at the current employer. I have been looking all across US and Canada for work for past 2 months. So the following seems like my only option right now which is why I'm even considering it.
A US employment agency is hiring me for (just shy of) 6 months assignment. They INSIST I open a US corp so I can be paid 'corp to corp'. I already have a CDN corp which they won't accept just to make taxes and payroll easy on themselves. They are willing to sponsor me with a TN Visa for said position which I am eligible for.
1) If I open a US corp so the agency can pay me through it, can I then further pay myself to my CDN corp? If so, how? I have TD Bank account. I can link the two accounts once I make one in US for this agency's payroll. Then what? How can I actually show this on cdn tax return as a payment to my CDN business?
I will be physically present in the US during this entire assignment. Reason I want to go 'corp to corp' instead of W2 is because I have a family + mortgage in Canada and I am responsible for my own accommodations in the US so, that is double expense for me (I.e Cdn mortgage + US rent). So I would like to write-off as many expenses as possible.
I have called a few accounting firms for their free consultation; either they are unfamiliar or don't want to say anything useful without a fee. Normally i wouldn't mind paying but the fee is too large. Cheapest being $200+ per half hour!!!!! (Wife lost her job recently and we found out shortly after that we were pregnant and she is having difficultly finding work now. So I can't be 'shopping around' with those kind of fees. Our EIs are barely covering us as it is with savings depleting fast. First time in my life I've had to use EI.)
2) I've found that it is easiest to open a corp in Delaware even though I will be employed in a different state. Is this true?
2b) Is it fairly easy for a Canadian to open a US corp?
3) How to file taxes/expense reports in the US? I purposely requested the assignment be less than 180 days (just shy of 6 months) so that I can avoid being taxed in the US. Is this even possible?
I can just pay taxes in Canada. I know how to do the expenses here, etc. under my cdn corporation.
4) Is 1099 better for me than corp to corp? I dont particularly want to do W2 as it will pay me much less and I can't write stuff off. With W2 I will be barely breaking even with my cdn mortgage + US rent and living expenses.
I apologize for the long post. It's past 4 AM and I haven't gone to bed yet! I'm just really stressed out and feeling inadequate that I am unable to look after my family. And it's my first baby.
I wish you guys can share your experiences and advise on what you feel is best for my situation.
Thank you!
