Canadian IT Consulting corp use an LLP in the US?

[Sujane80]

Is an LLP (in Texas) an acceptable vehicle for an Canadian IT consultant on corp to corp contract in US (and considered an alien resident) to run revenue through and pay US taxes? The Canadian corp and the LLP would both be owned by the same 2 people on a 50/50 basis. How would this compare to, say, an S Corp in the US?

[JGCA]

An LLP would simply allocate the income to each partner and affof a limited liability that a corp has, for tax purposes each partner has to show teh income so the corp aspect is not available for tax purpose as corp to corp as you indicated. If the Cnd corp and the LLP are owned bythe same persons the CND corp will pay the LLP? It makes no sense to have this structure. If you want corp to corp set up a regular C corp in the US and it can deal with your CND corp you can not use an S corp if it has non US citizens as shareholders.

[Sujane80]

The idea is that the US staffing company that is currently paying the Canadian Corp would instead pay the US LLP and the partners take out the money and pay US taxes on it.

But since my husband is in the US on a TN visa, I don't think this will work. Someone on a TN can only work for the sponsor company and maybe having an LLP in the US would be considered as "working" for the LLP? I am having this argument with the advisor who is recommending this.

I think the simplest route is for my husband to switch to W2 status with the staffing company and leave the Canadian corp out of it. Going through the Canadian corp creates a lot of paperwork and costs associated with being tax compliant in the US.

Any comments?

[JGCA]

Yes if you leave the corp out of it it would be more efficient fo you indeed.