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Opening a company to work for US employee

Dimhil

Star Member
Mar 12, 2017
67
2
Hi,

I am currently on W2 with a US employee, as I have moved to Canada, this year, I filed my taxes and was shocked to see that I had to pay additional 50K to CRA above and beyond what I paid in US.
As now I am Canada and not moving back, I think It does make sense to stop my US payroll and start a company which can have a contract with my current US employer(My employer agreed to move me from w2 to contract).
My question is now, what should be my next steps:

How will being a company rather than w2 will help me in tax?
Should I open a cooperation ? and do I need to register in Ontario or just Federal?
How can I bring money in Canada? My employer doesn't have roots in Canada.
 
 

canuck78

VIP Member
Jun 18, 2017
45,732
10,876
Hi,

I am currently on W2 with a US employee, as I have moved to Canada, this year, I filed my taxes and was shocked to see that I had to pay additional 50K to CRA above and beyond what I paid in US.
As now I am Canada and not moving back, I think It does make sense to stop my US payroll and start a company which can have a contract with my current US employer(My employer agreed to move me from w2 to contract).
My question is now, what should be my next steps:

How will being a company rather than w2 will help me in tax?
Should I open a cooperation ? and do I need to register in Ontario or just Federal?
How can I bring money in Canada? My employer doesn't have roots in Canada.
How are you continuing on your US payroll after you became a Canadian resident? What type of work permit do you have in the US or do you have permanent status in the US?
 

jclarke99

Hero Member
May 10, 2020
234
73
You don't want to be a W2 US employee while residing in Canada, and it may well be illegal. At best, you should pay the required Canadian taxes and attempt to "claw-back" taxes paid to the U.S. using the bilateral tax credit.
 
Aug 18, 2022
2
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Hello sir very happy to write to you, I am looking for a job in case you need an employee, you can tell me because I will be very happy to integrate into your company!