FAQ: Can I work Remotely for a Canadian Company While on a TN Visa?
Question: I make digital products and sell them online in Canada. Can I continue to run this small business in Canada while I work with a TN Visa in the USA?
Reply: Under the U.S. immigration laws, a nonimmigrant (such as a TN visa worker) who fails to maintain his/her nonimmigrant status may be deported from the U.S. INA § 237(a)(1)(C)(i). A nonimmigrant worker may only engage in the employment he/she was authorized to perform by U.S. immigration authorities. Any unauthorized employment by a nonimmigrant constitutes a failure to maintain status. 8 C.F.R. § 214.1 (e).
If you are providing any services to a U.S. client, or U.S. customers are purchasing your products, then I think the result would be clear: most immigration officers would consider this unauthorized employment. As indicated above, this could result in your removal from the U.S. Alternatively, if discovered by U.S. border officials when traveling this could lead to a denial of entry to the U.S., the revocation of your TN visa status, and potentially an expedited removal charge, which results in a 5-year bar to the U.S.
Whether this same result would occur for someone who is only working for a Canadian company providing services or products exclusively for Canadian customers is a gray area under US immigration law. If your business has no U.S. office, has no U.S. customers, is not competing with U.S. workers or taking jobs from U.S. workers, and there is no benefit to the Canadian business with your being in the U.S., then you could argue that the Canadian-based work does not violate your TN status and is not considered unauthorized employment.
However, keep in mind that every time you enter the U.S. you will be subject to inspection and a border's officer's discretion in whether to re-admit you to the U.S. If a border officer discovers the Canadian work, you may be required to prove that the work does not violate U.S. immigration law. The burden will be on you to establish this, and given that U.S. immigration authorities have not formally stated whether such work is permissible, I would exercise caution.
If you do decide to continue the Canadian work while in the U.S. under TN status, I would recommend having pre-existing documentation available showing that you only service Canadian clients, and that the business has no U.S. nexus as described above.