US based LLC/S-corp, living in Canada

[littleangelone]

Hi all

I am reaching out to a CPA also, but wanted to see if anyone here has done consulting with a US-based consulting company while living in another country (Canada, in this case)?

Background: my husband has just accepted a job which will move us to British Columbia in the next few months. It's a smaller area, and there's no opportunity for the specific type of work that I do. I am toying with the idea of setting up a consulting Co in a non-resident requirement state, while I live in Canada.

 

[patriotpaladin]

@littleangelone maybe more of a r/USExpatTaxes question, or even r/cantax. I feel like I've heard that LLCs/S-corps are treated unfavorably under Canadian tax law, but I'm not sure.

Is there a reason that you need to have an entity rather than receiving money directly as a sole proprietor?

 

[littleangelone]

@patriotpaladin More of a protection for myself than anything.

 

[patriotpaladin]

@littleangelone I'm a tax pro, not a lawyer, but my understanding is that the liability protections of LLCs are overblown and it's more important to have good insurance

unrelated: I don't know the details, but if you're going to be residing in Canada you may need to register for and make payments into their social security system instead of the US one (and then submit proof of that with your US taxes to avoid having to pay self employment tax in the US) – something to look into