Working remotely for a US company

[AkashPatel1990]

Hi All,

I need some suggestions. I am on my Canadian PR and living in Toronto. I have a job offer to work for a US company. They want me to work remotely from Canada. But they don’t have subsidiary here in Canada. What’s do I need that allows me to work for the US company without any issues? Can I setup a Sole proprietorship company and work for them?

Thanks

 

[aman.alam]

Yes, you can setup a sole proprietorship and work as a remote employee, but you'll have to pay taxes yourself, on the income that you receive.
I don't know about the specifics, but I do know that it's possible.
Buy an hour with a tax accountant to learn the specifics

 

[dumdum_yo]

Hi All,

I need some suggestions. I am on my Canadian PR and living in Toronto. I have a job offer to work for a US company. They want me to work remotely from Canada. But they don’t have subsidiary here in Canada. What’s do I need that allows me to work for the US company without any issues? Can I setup a Sole proprietorship company and work for them?

Thanks

Curious how your arrangement will be set up. Would you be getting salary in the US? If yes, do you have a work visa for US and just working remote from Canada?

 

[canuck78]

Curious how your arrangement will be set up. Would you be getting salary in the US? If yes, do you have a work visa for US and just working remote from Canada?

They mention setting up a sole proprietorship company. You can still get paid in US dollars but you are working in Canada and don’t need a US visa. Would suggest sitting down with an accountant to discuss the best way to structure working for a US employer in Canada without a US visa.

 

[sumanthyj]

I am in a pretty much similar position, I have had a great interview with a US client for a remote position. Until after the interview they realized I am a Permanent Resident of Canada and not a citizen yet. So, I have explored few posts and have done my research on how to proceed and have found suggestions to go for an incorporation. But, there seems to be no document showing that's one way of doing things.

Can someone here point to where I can find something of similar documentation to show it to my client and get a job?

Thanks in advance

 

[funloving]

You can work for US firms from Canada. I have been doing it. But remember that can only hire you as a contractor, if they don't have a local office/presence. DM me if you need any other info. Thanks,

 

[jclarke99]

You can work for US firms from Canada. I have been doing it. But remember that can only hire you as a contractor, if they don't have a local office/presence. DM me if you need any other info. Thanks,

My thought was to do the same (work remotely in Canada as a contractor doing work for a U.S. company). Be careful if you are only going to do freelance work for a single company.

If this is your situation, Canada Revenue (CRA) may well classify you as a "Personal Services Business", which has some serious tax disadvantages (it appears).

Quoting from this site: https://www.thebalancesmb.com/costs-of-declaring-a-personal-service-corp-2948621

"First and foremost, you want to avoid being in the situation of working only for a single client, especially in a long-term continuous relationship.

You want to avoid the perception that you are an employee of a particular client. If a third party could mistake you for an employee of the company, you're in danger of the CRA viewing you that way, too."

Unless you're a risk taker, I'm thinking that the Professional Employer Organization (PEO) option is the safer way to go.

 

[skrish212]

Hello everyone! I am a Canadian PR now and am planning to move and work for my US employer. My employer says US and Canada has a treaty where once you pay taxes in US, taxes in Canada can be avoided. They also mentioned I could be paid in a US bank account (even without a work authorization). How true are these? If my employer has presence in Canada, do you think its best to be paid via that? Appreciate your inputs!

 

[canuck78]

Hello everyone! I am a Canadian PR now and am planning to move and work for my US employer. My employer says US and Canada has a treaty where once you pay taxes in US, taxes in Canada can be avoided. They also mentioned I could be paid in a US bank account (even without a work authorization). How true are these? If my employer has presence in Canada, do you think its best to be paid via that? Appreciate your inputs!

Will you be working under an H1B in Canada?

 

[scylla]

Hello everyone! I am a Canadian PR now and am planning to move and work for my US employer. My employer says US and Canada has a treaty where once you pay taxes in US, taxes in Canada can be avoided. They also mentioned I could be paid in a US bank account (even without a work authorization). How true are these? If my employer has presence in Canada, do you think its best to be paid via that? Appreciate your inputs!

It's not clear if you are planning on moving to Canada or the U.S.

Will you be working for your US employer in Canada or in the US?

 

[skrish212]

It's not clear if you are planning on moving to Canada or the U.S.

Will you be working for your US employer in Canada or in the US?

Sorry, I'm planning to move to Canada but continue to work for my US employer

 

[skrish212]

Will you be working under an H1B in Canada?

No, my H1 expires at the end of this year and that's one of the reasons I want to move. Make things less complicated visa wise.

 

[canuck78]

No, my H1 expires at the end of this year and that's one of the reasons I want to move. Make things less complicated visa wise.

What your company has told you is completely wrong. You are only able to work in Canada so either need to be a consultant for your US employer or work for the Canadian branch.

 

[dumdum_yo]

Best is not to get paid a salary in the US without proper work authorization regardless of your location. If you will be working from Canada and you have a way to get paid through a Canadian entity that's the cleanest way IMO. That's what I ended up doing.

 

[skrish212]

What your company has told you is completely wrong. You are only able to work in Canada so either need to be a consultant for your US employer or work for the Canadian branch.

Thank you! I thought it sounded off too but just wanted to be sure. Appreciate your help!