Setting up as an Independent Contractor in Canada for U.S. company

[Swanip]

Hello,

My employer in the US is willing to hire me as an Independent Contractor, once I move to Canada (Vancouver BC area). I would like to hear from people who have successfully done so in the past and have established themselves as Independent Contractors working for the US employers.
I would like to know the process of how to establish as an independent contractor, meaning how to set up my LLC/incorporate ? . Currently, I have a limited understanding of the terms. Do I need to hire a lawyer (if yes, will appreciate any recommendations ) and a tax consultant firm (again, recommendations appreciated)
I would like to know what are the tax and finance consideration.
I would like to know if there are other viable options

Please comment and provide recommendations if any.

 

[greencard14]

Hello,

My employer in the US is willing to hire me as an Independent Contractor, once I move to Canada (Vancouver BC area). I would like to hear from people who have successfully done so in the past and have established themselves as Independent Contractors working for the US employers.
I would like to know the process of how to establish as an independent contractor, meaning how to set up my LLC/incorporate ? . Currently, I have a limited understanding of the terms. Do I need to hire a lawyer (if yes, will appreciate any recommendations ) and a tax consultant firm (again, recommendations appreciated)
I would like to know what are the tax and finance consideration.
I would like to know if there are other viable options

Please comment and provide recommendations if any.

Hi, did you find answers to your questions? I'm also kind of in the same boat, let me know what you found out. Appreciate your help, thanks!

 

[NetMecca]

You can operate as a sole proprietor or register an LLC (limited liability company). The latter is recommended for several reasons including that it separates personal assets from business assets. There are usually also good tax reasons for the latter.

You will have to invoice your client like a regular business does for any client. Would also be beneficial for tax reasons to have more than one client.

Make sure you have the appropriate insurance, especially liability / errors and omissions, since you will no longer fall within the scope of your employers insurance and they can easily come after you for when things go wrong (unless you can negotiate indemnity from them as part of your contract).

If you are working cross border, you may run into some GST / HST issues as well (especially if you operate as a subcontractor.) You may have to registers for GST (or not) depending on the specifics of your work.

In BC healthcare requires contribution for coverage which is typically handled by an employer. Make sure you have that set up properly.

For tax, and incorporation advice I would suggest that you speak to both an accountant and a lawyer to ensure you get it right the first time.

Good luck.

 

[Swanip]

You can operate as a sole proprietor or register an LLC (limited liability company). The latter is recommended for several reasons including that it separates personal assets from business assets. There are usually also good tax reasons for the latter.

You will have to invoice your client like a regular business does for any client. Would also be beneficial for tax reasons to have more than one client.

Make sure you have the appropriate insurance, especially liability / errors and omissions, since you will no longer fall within the scope of your employers insurance and they can easily come after you for when things go wrong (unless you can negotiate indemnity from them as part of your contract).

If you are working cross border, you may run into some GST / HST issues as well (especially if you operate as a subcontractor.) You may have to registers for GST (or not) depending on the specifics of your work.

In BC healthcare requires contribution for coverage which is typically handled by an employer. Make sure you have that set up properly.

For tax, and incorporation advice I would suggest that you speak to both an accountant and a lawyer to ensure you get it right the first time.

Good luck.

Hello,

Thank you for providing me an insight.
Would you be able to recommend a lawyer or an accountant that we can talk to, and may have done this before.

again, thank you

 

[NetMecca]

Hello,

Thank you for providing me an insight.
Would you be able to recommend a lawyer or an accountant that we can talk to, and may have done this before.

again, thank you

Afraid I do not know anyone in BC. Maybe start with an accountant, perhaps BDO might have an office there. They have experience with international taxes and small businesses. I am sure they will be able to recommend a few lawyers for you to consider.

Good Luck

 

[ExpressoEntry]

Hello.. I am in a similar boat as you? Could you please let me know what you ended up doing?