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I'm starting a job with a US based startup, and I'm trying to understand the tax situation that I am now in.

What are the advantages between being a Sole Proprietor here in Canada vs incorporating? I also understand I have to file paperwork with the IRS to notify them that I am paying taxes in Canada, and that under the tax treaty I dont have to pay taxes there, correct?

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My understanding is that you must pay income and payroll taxes in the US and Canada gives you a credit on your taxes there. It has been several years since I looked into it so things may have changed. The terms of your employment (W2, 1099, corp to corp) will certainly impact the situation.

I recommend you talk to an accountant in the US.

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