TN visa (USMCA) and LLC ownership

The TN visa authorizes you to work only for the specific employer and in the specific professional capacity listed on your TN petition. Unlike some other visa categories, the TN does not provide general work authorization. Working for your own LLC as a consultant would constitute unauthorized employment because you are only permitted to work for your TN sponsor. The distinction between owning and working for an LLC is crucial here.

Similar to H-1B holders, TN visa holders may passively own an LLC. You can be a member of an LLC, receive profit distributions as a return on investment, and participate in major ownership decisions. However, you cannot provide consulting services through the LLC, manage its day-to-day operations, or perform any work that constitutes employment. Hiring employees or independent contractors to run the LLC while you remain a passive owner is the compliant approach.

As a TN visa holder residing in the U.S., you will meet the substantial presence test and be treated as a U.S. tax resident. You must report your worldwide income on Form 1040, including your TN employer wages and any LLC income. Your LLC income, even if passive, is reportable. Self-employment tax applies to net business income from a single-member LLC if the income is characterized as business income.

The U.S.-Canada tax treaty provides mechanisms to avoid double taxation. As a U.S. tax resident earning income in the U.S., you would report everything on your U.S. return and then claim foreign tax credits on your Canadian return for taxes paid to the U.S. Canada taxes its residents on worldwide income, so you will also file a Canadian return. The treaty ensures you do not pay tax twice on the same income through the foreign tax credit mechanism.

If you want to actively operate your LLC, you would need to change your immigration status. Options include obtaining an H-1B visa sponsored by your own LLC (though this has complexities), applying for an E-2 treaty investor visa if you make a substantial investment, or applying for permanent residency. A TN visa cannot be used for self-employment, even if the work falls within a USMCA professional category. Consult an immigration attorney to explore your options.