How To Get Paid By US Clients (Canadian Corp)
How Canadian corporations billing US clients can face 30% withholding, HST issues, and PSB reclassification – and the key factors CRA uses to assess the relationship.
📥 Free resources from this episode
US Client Toolkit
The Advisors TableUS Client Toolkit
A complete toolkit for Canadian corporations billing US client, covering W-8BEN-E, HST zero-rating, withholding, and cross-border tax considerations.
Show Notes
If you're a Canadian corporation billing a US client, your setup may look perfectly normal – until CRA decides it looks like employment.
CRA is actively reviewing a specific profile: one shareholder, one client, full-time hours, and working inside the client's systems. And if your corporation is treated as a Personal Service Business, the tax difference can be enormous.
In This Solo, We Cover:
• What the W-8BEN-E actually does for Canadian corporations
• Why an incomplete treaty claim can trigger 30% US withholding
• Why you may need to register for HST – even when charging your US client 0%
• Salary vs. dividends when you have one major US client
• How CRA determines whether your corporation is a Personal Service Business
• The 4 decisions that can increase or reduce your PSB exposure
A US client doesn't automatically create a tax problem – it's how CRA views your working relationship that matters.
If they determine you're effectively an employee, your corporation could face a 44.5% tax rate retroactively.
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