Contracting in the US

[tim123]

It's not clear what you mean by "having an employer".

You need an employer to get a Visa, you will not get one otherwise (not a working visa anyways). The employer needs to sponsor you for the Visa.

I do not know the rules but I think it very unlikely that your one man UK limited will qualify as a sponsor.

Usually, the Visa will be sponsored by the direct employer who will hire you on a PAYE basis, or an established 'agency' who will hire you on a PAYE basis (and subcontract you to the client a 2x what they are paying you).

You need to engage the services of a specialist Visa expert who will advise you on the type of Visa that you can obtain and how you should obtain it.

TBH I don't think that you will have any choice in how you are paid wrt to being taxed. If you want the gig, you are going to have to live with whatever taxation regime is appropriate for the Visa that you can obtain.

tim

[expat]

Thanks for the responses - what difference would having an employer make? I have a potential employer who is looking for the best way I can structure my contract, from a tax, visa and residency perspective.

Any opinions, plus reccomendations for who to approach for professional advice welcome.

Thanks

PJM

I worked as an employee (many years ago). It does work, and is convenient. The downsides were those that usually go with being employed: lower income, presumptious HR twats, rank-and-spank reviews, being expected to desire to stay with the company and contribute to it, dress code stricter than the clients', no choice of assignments, having to ask for vacation and not always getting it, and having to use precisely the (tiny!) annual allowance or lose it, being expected to stay late for non-billable team meetings and be grateful you're given a free sandwich. Plus being tied to that company by your visa: that hardly makes them treat you better.

[Crown Royal]

Usa

One option is to work under a management company that is based in both Canada and the US. Canadian work permits are easier to obtain. You could then hop across the border on a "business trip" to the US branch of the same management group, but you do need to come back to Canada like atleast every second weekend. Your fiscal domicile will have to be in Canada. Not exactly legal (unless you're a Canadian/US national and are working under the NAFTA provisions), but gives you a work around for your start-up, at least. After 1 year of doing this (assuming that your frequent hops across the border doesn't raise suspicion) you can transfer to the US branch of the management company under an L-1 visa (which has no quota restrictions like the H1B and if I'm not mistaken, the L-1 visa is valid for upto 7 years - you can apply for a GreenCard in between)

It's not exactly a financially interesting solution, with management costs and all. But it basically gives you "disguised employment" for immigration purposes. So it depends on what you want: To experience America or to make a load of cash. Sometimes you can achieve both, but in most cases you'll probably achieve one over the other.

PM me if you want details on a management company just outside Toronto, who might be able to help.

[PJM]

Contracting in the US - help....

Thanks for the responses - what difference would having an employer make? I have a potential employer who is looking for the best way I can structure my contract, from a tax, visa and residency perspective.

Any opinions, plus reccomendations for who to approach for professional advice welcome.

Thanks

PJM

[TheFaQQer]

Contracting in the US is not the gravy train that it is in Europe. It is the bottom rung of the ladder for people who can't find a decent perm job. Good engineers in the US stay perm and can command salaries of 150K dollars just as an engineer (though mediocre ones don't achieve this).

HTH

tim

The US take the approach that if you are a good contractor, then they will reward you with a permie job. As ever, there are some good Dilbert cartoons about it.

[expat]

...
Contracting in the US is not the gravy train that it is in Europe. It is the bottom rung of the ladder for people who can't find a decent perm job. Good engineers in the US stay perm and can command salaries of 150K dollars just as an engineer (though mediocre ones don't achieve this).

HTH

tim

Isn't that because we get a "job insecurity" premium because we are a more flexible workforce than permies; whereas in the US the whole workforce is "flexible"?

I'd work permie, if I got the same money and the same lack of stigma attached to frequent change.

[tim123]

Apart from the above comment about Visas, B2B contracting (they call it Corp to Corp) in the US is highly regulated.

You may not contract yourself as a one man company on a time hire basis unless you genuinely look like a self employed person. This include finding your own work, billing by results and taking on the risk of project failure.

If you want to be a BoS consultant billing by the hour for just turning up, then you must work through an agency on a PAYE (equivalent) basis.

There really is no other option to the above, client companies (and more crucially agents) know this and you won't find many opportunities to get around it. Establishing C2C credentials is a world away from beating IR35: it isn't just a matter of a few contract tweaks and there is certainty not a "I think I could be inside but I'll take a chance of not getting caught" option. If you might be inside then you work agency PAYE or you don't get the gig.

The worst thing about this rule (IMHO) is that the rules limit supply/demand for consultants. Agents work on temp type margins (50%) and offer appalling rates to newbies because they know that you can't go elsewhere.

Contracting in the US is not the gravy train that it is in Europe. It is the bottom rung of the ladder for people who can't find a decent perm job. Good engineers in the US stay perm and can command salaries of 150K dollars just as an engineer (though mediocre ones don't achieve this).

HTH

tim

[cojak]

Most people I know do it illegally as the quota for visas is so small. Even a friend whose integrity is calibrated to a higher level than mine just shrugged when I said that I was shocked when someone offered me work while 'on holiday'.

HTH

[PJM]

Hi there

I am currently exploring contract opps in the US and would welcome some advice as to my options for structuring my employment out there. I am already trading in the UK with my own company and intend to work in the US for 1-2 years. What options should I consider, in terms of taxation, company registration, invoicing for my services, what currency to charge, where to receive and remit my payments etc etc??

I would really appreciate any advice as I need to present my potential employer with a range of options for moving forward next week..

Best

PJM