LLC between Canadian & American partners

[pciurysek]

Hello,

I'm in the process of setting up an LLC in the US with an American business partner, I am Canadian. I'm having some problems finding detailed answers to my particular questions at this time, so I'm hoping someone can help me out.

The situation is this: We are both physicians and are starting an educational company that will mainly be run online, with some physical work in the US and Canada. As far as paying ourselves, if I work ONLY in Canada, do I expose myself to the US tax system and the Canadian, or does taxation rely solely on where the physical work was done? Also, if I decided to do some work in the US, would I simply file US taxes when I was in the US, and vice versa for him?

When we pay ourselves from the company, are we each only taxed in our individual countries as long as work was only done there? Because we will also hire other physicians in the US and Canada to work in only their country of residence, is there complicated implications to this as far as filing our company profits/losses/etc. If I hire a Canadian to work alongside me here in Ontario, is his pay subject to American tax laws or is it solely exposed to Canadian tax laws.

Sorry for the complexity of the issue, I'm really just looking to setup a legal entity that will protect us both, allow us to focus on the business, and allow us to do so while both being from different sides of the border.

Thanks in advance for any answers!

Paul