One member US LLC working in Canada

[CRM001]

Hi all,
I am new to this forum...so bare with me. I have some questions:
Background:
I am a US citizen providing software services to a Canadian Company. I have a sole member (me) LLC (sole propietorship?) and have been working in Canada for almost a year.
Last year, this consulting canadian firm contracted me and was able to pay me via direct deposit in US dollars and without any (15%)witholding. This year, and after my contract was renewed, just like in the past and without mention of any kind about the withholding, they just went ahead and withheld 15% on behalf of the CRA. In other words, they decided to pay me 15% less than my invoice stated when this was not happening last year.
Questions:
Is there a way to avoid the withhold?
Will I be double taxed?
Is it possible to get paid under my name as a sole propietorship instead of under my LLC, will this avoid the withhold?
Can I get paid in Canadian dollar, then do transfers to the U.S. and file US taxes ONLY on the transfers which will be 100% of the payments?
Should I stablish my LLC in Canada?
Comments:

I am not looking to aovid taxes but to avoid filing in both Canada, and US.

Any help will be appreciated.

Best Rgds,CR.

[nelsona]

Did you ask them why they began withholding?

There is a new tax treaty article affecting your typre of arrangement. It is possible they felt that withholding and Cdn tax were not avoidable.

In any event, if you rebeing improperly withheld, you can get the tax back by filing a non-resident return at year-end.

If you are taxable, then the Cdn tax correctly paid will be credited on your US return for that year. thus avoiding doube taxation.

But ypu need to ask their accountant why the change