Hi There!I love this service, by the way ...I'm a Canadian citizen. I have a small consulting firm in Canada, pretty specialized technology commercialization consulting.I have recently formed a business relationship with two individuals living the U.S. We want to formalize this relationship by forming a U.S. Corporation; a software company.I will be CEO of this new company and, of course, want to be paid with revenue generated from customers. However, I obviously won't be taking a salary as I don't have a green card. I've done a bit of research ... I think I can take dividends as a shareholder / officer of the company (although not sure if that has a maximum cap?) -- I believe those dividends are then taxable in Canada due to tax treaty's between the two countries?The other way I've thought of to bring revenue to me is to simply bill the U.S. company through from Canadian consulting company. To properly account for the withholding tax, I've done this before when I've billed other U.S. companies, using a W8BEN form with an EIDN number.QUESTION======A) What is the right way to approach this to make sure I'm tax compliant in both Canada and U.S. jurisdictions?B) I suspect part of this lies in the type of corporation formed -- and I believe LLC is the proper type? I will also be an owner -- Can my Canadian business own the 25% shares I will have in the new LLC (or do I have to be an owner personally)? Which is better … corporately or personally owned?C) What is the best state to incorporate in? Of Delaware, Nevada and Wyoming: Wyoming seems to fit the best ... Delaware is good for big corps, and apparently, tech companies in Wyoming get more respect than those from Nevada. What do you think the best state is?
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Hello Fran-mod ... yes, I still would like an answer, if we can find someone. I actually meant to post this in the U.S. version of justanswer.com, but I guess it defaulted to my Canadian instance. I know there are lawyers, especially in the border states like Washington, that have a good understanding of this aspect of law.
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