Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            

Canadian and US resident with LLC

Asked by: Laurie - 24 October, 2012
What is the best way for a Canadian and US resident to do real estate investing business in US, for both parties?
For example, I am confused about tax implications for Canadian's having an LLC in US.
Answered by: Robert Kowalski - 25 October, 2012
Dear Laurie,

Technically anyone can be a member of an LLC, so you can form one together with your American partner and own a real estate property though it.

As far as taxes go I do recommend you to consult a CPA who will be in a better position to explain how it works in your specific case. We also have a free tax webinar designed for non-U.S. entrepreneurs where you can learn the basics of taxation and get a chance to ask questions.

In general, when the time comes to report the profits of the LLC you would file a tax return, and the LLC would issue K-1 to the members, listing personal distributions of profit. A K-1 is used to report your income on a personal tax return, for which you would need to obtain an ITIN (individual tax ID number), which is usually obtained simultaneously with filing your first tax return.

Finally, you would need to report your US profits (and US taxes) on your Canadian return and the tax paid in Canada would be calculated along the lines of the tax treaty between the US and Canada.

Comments:

Connect With Us

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment