Canadian individual working remote for US company - What entities should I pick?

[Ludo]

Hello,

I am Canadian individual working remote for US company - What entities should I pick?
I am having a hard time picking the right options and looking for some insights to fill it out properly

[CassyL]

Hi @Ludo, 

Thanks for being a part of the Deel Community, and for sharing your question about filing your tax entity appropriately! In Canada, the entities that are taxable include:
Personal, business, corporation, trust, international and non-resident income tax.

Depending on how you were hired in the remote US company, you'll want to ensure you file appropriately. The definitions of each category, as defined in the article differences between a Contractor and an Employee, state:

1. An employee is a worker that gets hired and managed by an employer and receives mandatory employee benefits.
2. An independent contractor is a worker who provides services to a company on a short-term or per-project basis and doesn’t receive employee benefits. 
3. An employer may face misclassification penalties if the authorities discover they’ve misclassified an employee as a contractor.

I see that you added Contractor as a label above, so if you're brought on as an independent contractor, perhaps this article on How to Set as a Sole Proprietor in Canada will be helpful. Specifically: 

Reporting income as a sole proprietor

From a tax point of view, the money earned as a sole proprietor is considered as personal income. The sole proprietor pays taxes by reporting income or loss on a T1 income tax and benefit return. Because your personal income and business income are one, along with your personal T1 income tax and benefit return, you must file Form T2125 Statement of Business and Professional Activities.

In addition to federal income taxes, you’re also subject to provincial income taxes.

Furthermore, you also need to file a return if you are claiming an income tax refund, a refundable tax credit, a GST/HST credit. You should also file a return if you are entitled to receive provincial tax credits.

Please let us know if you have additional questions, or if there's more clarity we can provide! Additionally, if you are looking for a more personalized answer based on your specific scenario, I'd recommend reaching out to the Deel Support team, who can look into your account details in more depth.

Thanks, 
-Cassy