Consultant working for a foreign company

[mitamata]

Hi all,

I recently immigrated to Canada (in BC), my husband sponsored me.
Here's the situation: I am working as a consultant for the company I used to work for back in Slovenia. I'm a programmer and can work anywhere as long as I have my laptop and internet access. My "business" is very simple, I don't really have any expenses with it as I work from our living room.

I could probably just pretend I don't work and not bother with taxes, but I don't want to take any chances and wish to do this right. So my question is: what do I need to? I haven't registered my business anywhere as I found no information on it, should I do that somehow? What records do I need to keep? I only get one income per month and that is the fee my former company pays me at the end of the month. They transfer money directly into my chequing account. I'll be happy to disclose my income, just wondering what I need as evidence of it. Do I have to issue a bill to the company every month or is the contract that states I get $X per month enough?

I'm kinda lost here really. Any guidence would help. I looked online, but everything I found was way too confusing. If anyone has any useful links, I'll be happy to read all the resources you can offer.

Thanks

[Chander]

Dear Mitamata,
You give the bill to the company and in the bill you elaborate yr expenses like convenyce alowence for movement to the company,stationery charges used for corespodence,refershment charges etc.After deducting such chrges from yr salery then you give TDS(tex deduction at source) on the balance and have statement from the company for yr record or to show to incom tex department at their requirement.I feel it will be more better if you higher incom tex lawyer to fill yr return.For any further information pls ask.
Chander

[max101]

Hi all,

I recently immigrated to Canada (in BC), my husband sponsored me.
Here's the situation: I am working as a consultant for the company I used to work for back in Slovenia. I'm a programmer and can work anywhere as long as I have my laptop and internet access. My "business" is very simple, I don't really have any expenses with it as I work from our living room.

I could probably just pretend I don't work and not bother with taxes, but I don't want to take any chances and wish to do this right. So my question is: what do I need to? I haven't registered my business anywhere as I found no information on it, should I do that somehow? What records do I need to keep? I only get one income per month and that is the fee my former company pays me at the end of the month. They transfer money directly into my chequing account. I'll be happy to disclose my income, just wondering what I need as evidence of it. Do I have to issue a bill to the company every month or is the contract that states I get $X per month enough?

I'm kinda lost here really. Any guidence would help. I looked online, but everything I found was way too confusing. If anyone has any useful links, I'll be happy to read all the resources you can offer.

Thanks

Hi Ms. mitamata, do you have any update on your situation? i have similar Situation. I have moved to Canada but I still work for my employer in the US. Do we need to register our company? Please update your status.

[Ra00]

I would also love to hear on this from seniors as i am also in the same situation.................

[max101]

I would also love to hear on this from seniors as i am also in the same situation.................

Ra00,
I am still researching on this topic. I tried to consult a Accounting consultant but the fees are $180 per hour !. that's just too much for me

Based on my research, I find the options could be:
1. Setup a Sole Proprietorship
2. Work as Independent Contractor

I think if we work as independent contractor,  we don't need to register our business. I am more interested in that option at this time as I think setting up Sole Proprietorship would be more complicated. But I am still researching on these options..

[starzibal]

Ra00,
I am still researching on this topic. I tried to consult a Accounting consultant but the fees are $180 per hour !. that's just too much for me

Based on my research, I find the options could be:
1. Setup a Sole Proprietorship
2. Work as Independent Contractor

I think if we work as independent contractor,  we don't need to register our business. I am more interested in that option at this time as I think setting up Sole Proprietorship would be more complicated. But I am still researching on these options..

I am an Accountant. I would recommend Limited Liability Company(LLC) its little bit expensive to open(fee to govt etc)but it can save you lot of hassles and work related issues. Don't go for sole prop. as it does not mean anything, you don't even have to file your taxes separately from sole prop. business you open. It will go in with your income. It has unlimited liability to you, business and personal assets are at risk.Some employee benefits such as owner's medical insurance premiums are not directly deductible from business income (only partially deductible as an adjustment to income). any many more tax related disadvantages. whereas limited liability corp.(LLC) has limited liab. if something goes wrong, your personal assets on stake in sole prop. whereas in LLC its not.

[max101]

What is the process of registering for LLC in Canada?. Seems like LLC does not exist in Canada. any suggestions?

[starzibal]

What is the process of registering for LLC in Canada?. Seems like LLC does not exist in Canada. any suggestions?

You are correct. LLC is for USA. Sorry about that, similar to that in Canada is LLP.

[TatianaRussia]

Mitamata, you have to disclose your income as self-employed income.
Your expenses are internet connection fee, rent of the home-office, computer amortization etc.