US Citizen working remotely for Canadian company can I live in the US

I am a US citizen and I will be working for a company in Canada (Toronto) as a software engineer. The company does not have any physical presence in the US, but I will be allowed to work remotely.

1. Am I legally allowed to live in the US while working remotely for the Canadian company? If not, are there a certain amount of days that I am able to live in the US while working remotely for the Canadian company?

2. How would this affect my taxes and my salary? Would I pay to the IRS or the CRA?

3. Will my company have to give me a special kind of employment? They do not want to hire me as a contractor they want to hire me as an employee.

Please let me know if this is not the right place to ask this or if this has already been answered.

Thanks!