Do US tax residents need to Report their cDN Corporations to the IRS?

Question

3235 viewsJune 2, 2021

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Anonymous Posted May 31, 2021

I am Canadian moving down to the US to work for a US company as a full-time employee under a TN visa.

I currently work for this company already now remotely, as a contractor who bills under my Canadian corporation.

When I have moved down to the US, I will stop billing them through my corporation and become a full-time employee. There will no longer be any activity in my CDN corporation.

If this corporation will not be generating any additional income after I move, am I obligated to file any paperwork with the IRS?

Do I need to close my corporation in advance of moving down? Or can it remain open?

Thanks

1 Answer

score 0 · Answer 1 · 2021-06-02T19:29:43+00:00

If you become a US resident for tax purposes, you will need to file form 5471 with the IRS in respect of your Canadian corporation. In addition, you will be subject to Canadian departure tax when you leave Canada. I suggest that you dissolve the corporation and pay yourself a final cash dividend prior to your departure from Canada.

Do US tax residents need to Report their cDN Corporations to the IRS?

1 Answer

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