Im a dual US/CA citizen. Im a resident of Ontario, Canada. I would like to see how this scenario would be taxed.
1) If I open a US LLC and sell / operate in Canada (while a Canadian resident) how would I be taxed? Would this result in double taxation? Who would have first rights to tax me and would I be able to use this as a credit to offset taxes owed to the other country? Would I be hit with both US Self-employment tax (SS/Medicare) and Canadian CPP? Any way to circumvent this?
2) How would the same scenario play out if I was to sell / operate in the USA?
LLC of a US/CA citizen operating in Canada
Moderator: Mark T Serbinski CA CPA
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- Joined: Tue Dec 18, 2018 6:31 pm
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- Posts: 42
- Joined: Tue Dec 18, 2018 6:31 pm
Re: LLC of a US/CA citizen operating in Canada
Allan explains it well here, but hes assuming the income is from the USA only (ill mostly be selling in Canada using Amazon.ca FBA): https://www.youtube.com/watch?v=kAFt6DCFX3k
Summary: CRA recognizes an LLC as a separate corporation, not as a pass through entity and therefore I am double taxed. He recommends a limited partnership
Im going to do more reading on limited partnerships. Basically what I want is a seperate US legal entity so I can open an Amazon.ca seller account using this entity and not be double-taxed by Canada and the USA. Suggestions?
Summary: CRA recognizes an LLC as a separate corporation, not as a pass through entity and therefore I am double taxed. He recommends a limited partnership
Im going to do more reading on limited partnerships. Basically what I want is a seperate US legal entity so I can open an Amazon.ca seller account using this entity and not be double-taxed by Canada and the USA. Suggestions?