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I am a Canadian who just landed a (short-term contract) job working remotely for a US company. Since this happened through a (US) recruiter, my employer would pay the recruiting firm, who would pay me.

The problem is that the recruiter is unable to find any viable option to pay me. They suggested I incorporate in the US and get a US corporate bank account (corp to corp), but this would be very time-consuming. They also suggested they pay me through their Canadian subsidiary, provided I incorporate in Canada.

Why can't they simply pay me as a 1099 contractor. Are there any people doing this sort of thing? How do you get paid?

Thanks in advance...

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I'm no lawyer and no expert, so take my remarks as entertainment only.

Also see this question.

If you have a U.S. SSN which is eligible for work, they may be able to pay you on 1099 basis with your SSN as a sole proprietor, unless they have some personal reason for avoiding that. So perhaps try asking about that specifically. HR policies can be weird and tricky, maybe a nudge in the right direction will help.

Not What You Asked: regardless, I might recommend you register as an LLC and get an EIN (sort of SSN for companies) for a variety of reasons. It's called a "limited liability" company for a reason. You may also have an easier time reaping various business-related rewards, like writing off expenses.

If you do so, consider a state with no income tax like Wyoming. (Or, for convenience sake, WA if you live in BC, or maybe NH if you live in Ontario.. etc.)

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  • What is WA in BC and NH in Ontario? Oct 17, 2023 at 3:19

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