- quote -

I don't know about special rules concerning US-Canadian
transfers, but you also seem to be confused about paying for
consulting services through another corporation.

I own a one-employee consulting company that is organized as
a C Corporation. When other companies retain me for a
consulting project, they are really retaining my company.
The consulting contract is between the company needing the
services and my company. All payments by the other company
are made to my company, never to me. My company then pays
me a salary (W-2) for the work performed and also pays the
company share of all necessary payroll taxes.

When I, in turn, retain an outside company to provide
certain services, such as lab tests, that I do not provide,
I just write them a check and list the expense in the proper
expense category, usually outside services. In your case,
it seems you can have an expense category foe consulting
services. This is the same category you would use if you
were sending payment directly to an individual operating as
a sole proprietor.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

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I own a S Corp in US and I have consultant from canadian
company who is working remotely from canada. How can I pay
the company for the hours he bills. Do I need to do anything
special or just cut them a check for the invoice. How do I
report this in my accounts. (corp-2- corp???).

Please advice.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >