Hi I am an IT consultant and a Canadian working in US for past few years. Recently, I won a contract in Canada. The agency that I am working with recommend to incorporate a company in Canada for getting better rates and tax return. My other option is as a sole Proprietor where I am paid for stat holiday's, and also have an option to enter in to our benefit program after 3 month (Cost). Having been away from Canada for many years and my limited knowledge of new tax law, I am reluctant as what is best for me. Is it to my advantage to register a cooperation for a 6 months contract? Tax wise? Could I use the cooperation for other international contracts in future? What are the advantages of making a cooperation rather than working on sole Proprietor? How many times a year I have to fill up taxes? Thank you-------------------------------------------------------------------------
Hello Taxman!!
I have a question for you. I am an IT Consultant working in the USA on a TN Visa, but with a Canadian Citizenship. I had been doing this for over a year with my former Canadian employer. This tax year, I submitted US federal and state income tax returns with foreign income, and then I filed a Canadian return. This coming year, my situation will change. I plan to incorporate myself in either Canada or the USA , I was thinking a Delaware LLC, but I’m not sure which would be more beneficial for me. I will be getting contracts on 1099 with no tax withholdings. My residence is in New Jersey , but I have real estate in Ontario as well. What will be my tax liabilities? I’m assuming I still have to do returns for both countries, personal and corporate, but who would I actually pay tax to, and to which country would I be reporting as foreign income?
Also, I’m wondering about RRSP’s? Are these deductible in the USA too, or do I need to open up an American IRA?
I will most likely dump off all my receipts to an international accountant and let them do it all for me. But I guess I could use some advice on what would save me the most in tax dollars. BTW, what are your fees like, to do personal and corporate returns, Canada and US?
Thanks a lot.
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