US LLC & C-Corp Setup for Canadians
We help Canadians form a US LLC or C-Corp and file its taxes on both sides. We handle state selection, EIN, IRS and CRA filings, and bank setup.
Trusted by Businesses in Toronto
This Service Is For You If…
- You want to sell in the US but don't know which state or entity to pick.
- You formed an LLC yourself but have no idea what to file, or when.
- You tried opening a US bank account online and got rejected.
- Your LLC is making money, but you don't know how CRA taxes it.
LLC or C-Corp: Which One Do You Need?
Most Canadian sellers start with an LLC. A C-Corp fits a few specific cases.
US LLC
- Best for: Canadian online sellers who want a simple US company
- IRS sees it as: You, the owner, by default. Can elect corporate tax with Form 8832
- CRA sees it as: A foreign corporation (T1134)
- Yearly IRS filing: Form 5472 with a pro forma 1120
US C-Corp
- Best for: Businesses raising money from US investors
- IRS sees it as: A corporation that pays US corporate tax
- CRA sees it as: A foreign corporation (T1134)
- Yearly IRS filing: Form 1120, plus Form 5472
The catch: by default the IRS taxes you, the owner, while CRA taxes your LLC as a company. We set it up so both sides match, and you don’t pay tax twice.
Our LLC Formation & Tax Filing Services
Everything you need to form your US LLC or C-Corp, offered by our cross-border tax accountants in Toronto.
State Selection & Formation
- Wyoming, Delaware and Nevada comparison
- LLC or C-Corp formation filing
- Operating agreement or bylaws
EIN & Setup for Non-Residents
- EIN application (Form SS-4)
- Registered agent in your state
- Form 8832 election, if it fits
- ITIN application if needed
US Banking Guidance
- Relay, Wise and Airwallex setup
- Stripe and PayPal integration
- Mercury alternatives for non-residents
IRS & CRA Tax Filing
- Form 5472 and pro forma 1120
- Form 1120 for C-Corps
- T1134 reporting to CRA
- FAPI calculations for passive income
What does it cost?
Company setup, one time
EIN and 1 year virtual office included
Yearly US LLC filing
IRS and CRA, per filing year
US LLC plus Canadian corp
Both sets of books, per filing year
Need Other Cross-Border Services?
Cross-Border Personal Tax
US tax filing for Canadians with US income, property, or investments.
Cross-Border Business Tax
Simplifying CRA/IRS taxes and preventing double taxation for Canadian entrepreneurs.
Ecommerce Accounting
Monthly bookkeeping, and US-Canada tax compliance for online sellers across borders.
How Our LLC Tax Filing Services Work
From choosing your state to filing your annual returns, here’s how we work with you.
1. Free LLC Tax Strategy Call
We review your goals, tell you LLC or C-Corp, recommend a state, and explain what you'll owe.
2. Formation & Setup
We file your formation documents, apply for your EIN, and set up your registered agent. It takes 5 to 10 business days.
3. Ongoing Support
Every year we file your IRS and CRA returns together, so both sides match.
Why Business Owners Choose Us?
IRS + CRA Together
Most US formation services don't understand CRA. We handle IRS and CRA together.
No US Travel
Form your company, get your EIN, and open a bank account, all from Canada.
Audit Cover Included
Platinum covers a CRA or IRS audit in full. Premium covers the first audit letter.
Our Client Stories
See What Other Business Owners Say
Get Started Today!
Talk with our US LLC and C-Corp tax accountants and get your US company set up the right way.
Can a Canadian own a US LLC or C-Corp?
Yes. You don’t need to be a US citizen or resident, and you don’t need to visit the US.
Should I form an LLC or a C-Corp?
Most Canadian online sellers start with an LLC. A C-Corp fits better if you plan to raise money from US investors. We look at your plans and tell you which one on the call.
What is the best state to form an LLC for Canadians?
It depends on where you do business. Wyoming has low yearly fees. Delaware is the usual pick for companies raising investment. If you have staff, a warehouse or an office in another state, you may need to register there too.
How much does it cost to start a US LLC from Canada?
Our fee to open a US LLC or corporation is 1100 to 1500 CAD, charged once. It includes your EIN and one year of virtual office.
How is a US LLC taxed in Canada?
CRA treats your LLC as a foreign corporation, even though the IRS may not. You report it on T1134. Active business profit is usually taxed in Canada when it’s paid out to you. Passive income can be taxed every year under FAPI.
How are US LLCs taxed by the IRS?
A one-owner LLC is ignored by default, so the owner reports its US business income. An LLC with two or more owners is taxed as a partnership. Either one can choose to be taxed as a corporation by filing Form 8832.
How do I avoid double taxation on my US LLC?
Pick the right setup before you earn money, and file both countries’ returns so they match. For some owners that means filing Form 8832 so the IRS and CRA both see a company. This is the simple version: the right answer depends on your numbers.
What is FAPI and does it apply to my LLC?
FAPI is passive income, like interest, rent or royalties, earned by a foreign company you control. CRA taxes it every year, even if you leave it in the company. Most active online stores don’t earn much of it, but we check every year.
What is Form 5472 and when is it due?
Form 5472 is an IRS information return. A one-owner LLC owned by a Canadian files it with a pro forma Form 1120. C-Corps that are at least 25% foreign-owned file it with their Form 1120. For a calendar-year company it’s due April 15, or October 15 with a Form 7004 extension.
What happens if I miss the Form 5472 deadline?
The IRS penalty is $25,000 per form. If it still has not filed 90 days after the IRS writes to you, another $25,000 can be added.
Do I need to report my US company to CRA?
Usually, yes. You file T1134 within 10 months of your year-end. The main exception is a small, inactive company: under $100,000 in total cost to you, under $100,000 in gross receipts, and under $1 million in assets. Shares of a foreign affiliate don’t go on T1135.
Why can't Canadians use an S-Corp?
S-Corps can’t have shareholders who are non-US residents. If you live in Canada and aren’t a US citizen or green card holder, an S-Corp isn’t an option.
What is C-Corp double taxation?
A C-Corp pays US corporate tax on its profit (21% federal, plus state tax in some states). When it pays you a dividend, that dividend is taxed again. As a Canadian, you can usually claim a credit in Canada for US tax withheld on it.
Can I switch from an LLC to a C-Corp?
Yes. Your LLC can choose to be taxed as a corporation with Form 8832 or convert to a corporation under state law. Each route has tax effects on both sides, so plan it before you switch.
Should a Canadian corporation own my US LLC?
Sometimes. It can help when profits stay in the business, but it adds filings and changes how the money reaches you. We ran the numbers on the call.
How much do yearly LLC tax filing services cost?
For a Canadian who owns a US LLC, yearly filing starts at 2500 CAD. With a Canadian corporation too, it starts at 6000 CAD. See all prices.
Do I need an LLC tax accountant near me?
No. Everything is done remotely. Our team is in Toronto and Mississauga and works with owners across Canada.
We serve clients in
- Downtown Toronto
- Markham
- Hamilton
- Vaughan
- Ottawa
- Etobicoke
- London
- North York
