TN Status, Independent Contractor, Own Support Letter

mforti

New Member
Hi Everyone, I am preparing to go to a POE for TN Status and am interested in anyone's comments on the situation.

I am a sole proprietor in Canada and have signed a contract to provide professional services (as an independent contractor) to a US company.

The contract is detailed and complete and addresses all of the items one would need to establish TN eligibility. However, the contract is addressed to me and the US company will not provide a "support" letter addressed to the CBP because they have been advised by counsel (Fragomen?) that this would create a risk that they will be treated as my employer which may create additional liabilities for them (payroll taxes?).

They have suggested that I can write the letter myself, as I am effectively my own employer in this situation, or that I should incorporate in Canada and have my corporation (me) write the support letter.

I have drafted a letter to the CBP which explains in detail the situation and references various sections of the CBP Inspector's Field Manual showing that what I am proposing is within the rules. The only thing I don't have is a "support letter" from the company.

Appreciate anyone's thoughts.
 
Thanks Marinoni. No a support letter is not mentioned but I've been to the border once already (forgot some documents) and they mentioned they didn't like my contract as a support letter because it should be addressed to them and not me. I think it should be fine but don't want to argue with them.

So the question is do I just present the contract or do I add a "support" letter that I will write or are both of these inadequate.

Much of what I've read online says there must be a separate support letter from the "employer" addressed to the CBP but in my case there is no employer. I did find one reference which said the letter can be addressed either to the CBP or to me, but I am unsure of the context.
 
General question to all knowledgeable in this. I am returning to Canada after many years in US on TN, retiring. If I want to consult in the US, is a TN (part time, maybe multiple for different projects/employers) a good idea? And done this way (like mforti described), or is there a better option?
 
For 38off, just to clarify, I have a contract from the US company (addressed to me) but do not have a TN letter from the company (addressed to CBP). I have not yet gone to the border to test this out - before doing so, I'll look for some reassurance or I'll try to get a TN letter from the company.

Also, from my research it seems that the rules do not allow for a Canadian TN Professional to go about the US looking for business - this would essentially be "self-employment" under the NAFTA rules. Sounds like you are in a similar situation to me, with many long time relationships in the US where contract opportunities naturally arise.
 
mforti, use the IRS, W8-BEN form. This exempts your US client from being responsible for tax deductions on your pay. But alas, it is not tax free money. CRA will no doubt be notified that you will be paying your own taxes in Canada from the revenue you received.
 
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