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Jessica
Consultant
ToLawyer, Expert
Welcome and thank you for choosing Just Answer! My name is***** am a lawyer in Canada and would be happy to assist you.
Please be advised that I am working from my computer and may not always be available immediately. Rest assured, I will get to your response as fast as I am able.
ToLawyer, Expert
Good morning, when you are paid, are you moving the money from US to Canada? Would funds be converted into Canadian dollars?
ToLawyer, Expert
ToLawyer, Expert
ToLawyer, Expert
ToLawyer, Expert
That company will likely be deemed to be a Canadian corporation responsible for Canadian taxes because the entirety of the control structure is in Canada, owned by a Canadian Citizen. You will also be responsible for Canadian taxes because you are in Canada receiving income.
That being said, you will likely not be double taxed as the treaty between US and Canada would ensure that you will not pay more taxes than country with the highest taxes, which is Canada.
ToLawyer, Expert
Does that answer your question today?
ToLawyer, Expert
You can if you like, but the control of the corporation would remain in Canada, because you are in control.
ToLawyer, Expert
Normally its just whatever is convient to you at this point, because tax consequences wise, it makes no difference.
ToLawyer, Expert
You are very welcome! Thank you for trusting us here at JustAnswer. If you have a new question in the future and would like to engage me again, please do not hesitate to request for me directly by typing - "This is only for Jchen" and I will get to you as soon as possible!
And of course, if you have any follow-up questions, please do not hesitate to continue typing them here.
ToLawyer, Expert
No problem!
ToLawyer, Expert
30% is a good number. Your effective tax rate at 150k income is approximately 28%.
ToLawyer, Expert
No problem!