LLC with member changed to full time Canada resident

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mymini
Posts: 2
Joined: Mon Nov 14, 2022 12:28 pm

LLC with member changed to full time Canada resident

Post by mymini »

Hi, I am reading through this site in detail and have yet to find the perfect response.
My partner and I have a small IT consulting LLC in the U.S. I am a resident of California and he used to be both a dual citizen living in the U.S.
Now he recently became a full resident in Canada a few month's back. I am reading that LLC will be subject to dual taxes and probably worse in that all income from our 2 member (only no employees) would be subject to Canada taxes. Can we avoid double taxes? It would be good if I were taxed U.S. and he would be taxed just in Canada for his portion of the earnings? Thoughts, become an S-corp or he becomes a independent contractor in Canada and is paid through the LLC. Thanks in advance.
mymini
Posts: 2
Joined: Mon Nov 14, 2022 12:28 pm

Re: LLC with member changed to full time Canada resident

Post by mymini »

Please note, I believe we are considered a "personal services company" per form 542 as both of us perform IT consulting/programming services for the U.S. based LLC. We are the only 2 members and both of us perform direct services.
Thank you,
Quintin Williams
Posts: 1
Joined: Thu Nov 17, 2022 10:59 am

Re: LLC with member changed to full time Canada resident

Post by Quintin Williams »

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