Working for US company as a Sole Proprietor

I am on PR in Quebec and moved recently from US. The US company is willing to hire me as a contractor but since they don’t have a presence in Canada nor do they want to create one, their preference is to go via business or PEO.

I have been looking into ways of how to make this work and came across one option to register myself as a Sole Proprietor with a Business name. If I register with a business name, then for the purposes of US company, they will be dealing with a business vs. an individual right? Does this setup create any potential permanent establishment liability for them? Per my understanding I would invoice the US company and send them a W8 Ben form which is used by businesses. Has anyone gone this route?

I realize the other options are to incorporate or use a PEO. Can anyone recommend a PEO and give an idea of how much cut they charge for their services? I plan to do more freelance work in future so incorporating is an option but I’d like an idea of the cost involved. For the time being, is it cheaper to incorporate or use a PEO?


Did you try as an independent contractor or is it the same as the sole proprietor? I’ve heard that you can work for a US based company as an independent contractor.

did you get answer or what did you eventually ended up doing?

What’s a PEO?

In general, It would be nice to know more about how folks are dealing with US employers who don’t have CAN entity. I’m going to be in a similar situation starting early next year.

Any traction on this thread ?
Was anyone above able to setup a sole proprietorship and work with a US Employer?
And can I do it if I have a dependent work permit, but its an open work permit?
I checked with my lawyer and he said legally I am allowed to do it. But he asked me to talk to a corporate tax, or employment lawyer.
Any inputs, direction appreciated.