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...


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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