Ideal US business structure for tax purposes

[pciurysek]

I'm a Canadian citizen starting a company with a US citizen in the US. I will be living and working for the company in Canada 100% of the time.

I can't seem to figure out which business structure is the best option for me come tax season (ie. Which will work best for my situation).

LLC vs. C-Corp. If you can give me the pro's vs cons' for each I would highly appreciate it.

Thanks.

[JGCA]

THe C corp is better option for you simply because it will allow you to receive either dividends or salary and it will be timed with the receipt of funds vs the taxation of this money, Example you decide to declare a dividend in 2013 but only pay it in 2014 you are taxed on it in 2014 so matiching with the foreign tax credit will be aligned .In an LLC the treaty will deem you to have received a dividend not a flo through of business profit and no tax credit will be given to you unless the money was paid to you in that year. W Example The LLC has busines profits in 2013 they are flowed through to the unit holders in 2013 as business profits so no tax is paid by the LLC it is merely giving the business profits to each unit holder but your actual drawings from your capital account are not the same amount due to retention of profits in the caompany for working capital or some other reason you then get to declare this as income and pay the tax but since the money may not have all been paid to you in the year you pay tax now and pay tax again on the same money when you actually get it into your hands.

Its tricky and costlky keep it simple gaet a reg c corp

[pciurysek]

Thanks for your help.