Working after entering on K1

[zyggy 9]

The only risk is the risk of abandonment in terms of your PR status... but there are PR business people who are making the commute every day and it doesn't risk their PR status...

In terms of the tax situation, there are ways that you can be paid as a commuter to reflect your situation as a US Resident (no Ontario Medical Premium for example)... your HR department should be able to figure out a way for you to work through that... but you would be paid as usual, but would have the 25% non-resident tax taken out of your check if you remained as an employee...

I would have a short consulatation with a Immigration Attorney who isknowledgeable about abandonment just to make sure that you have your i's dotted and t's crossed... I would also consult with a cross border tax advisor to see how you can minimize your tax burden by cross border employment...

Edited March 23, 2007 by zyggy

[Vox 0]

Thanks Zyggy!

I actually have options of either working as full time employee in Canada (CPP, EI + Canadian taxes paid) or to start up my own small consulting company in USA and provide services to them (pure contract based job); they do not care how it is formulated.

I arrived a month ago, I still do not know how big deal it is to start up your small consulting business in USA and provide your services in another country. It was very easy in Canada, you did not have to collect any provincial nor federal tax up to 30K earned, and it may be more difficult in USA.

I have to figure if I am allowed to start up your own consulting company in USA with EAD, I think this would be the best route since I would get to write off all business related expenses and pay less USA tax.

Thanks again Zyggy, great input!