US LLC Setup & Tax Services for Canadian Businesses
GTA Accounting helps Canadian business owners decide whether a US LLC is right for their situation, set it up when needed, and manage the related US and Canadian tax filings. We also help bring existing LLCs back into compliance. We work with clients across Canada, with offices in Toronto and Mississauga.
GTA Accounting is a highly rated CPA Firm in Toronto
It is the highest-rated accounting firm in North America with over 1100 5-star verified Google reviews across all locations. GTA Accounting has also won awards on Clutch 2 years in a row, featured in the Toronto Star and is one of the Best Companies for 2022 on "ThreeBest Rated".
Contact Us
How GTA Accounting Helps Canadian Business Owners with US LLCs
Before anything is formed, we look at what the US entity is for, where the profit will be earned, and who should own it, and we tell you whether you need one. Many Canadian businesses don’t.
How Canada and the US Treat an LLC
By default, the US ignores a single-member LLC and taxes the owner directly. Canada treats the same LLC as a corporation. That mismatch is why a US LLC can cost a Canadian owner more tax, not less.
LLC or Corporation?
When both countries see a corporation, the tax usually lines up more predictably. The right choice depends on your plans, and we'll recommend one with your numbers.
Who Should Own It?
You personally, or your Canadian corporation. Where profit will stay in the business, ownership through the corporation is often worth considering. We plan it together with your Canadian tax.
US LLC Formation & Setup Services
When a US entity is the right answer, we set it up so it works in both countries from the start.
Tax Filing & Compliance for Canadian-Owned US LLCs
We prepare the annual filings on both sides from the same records. Late or incomplete filings can carry significant penalties in both countries.
US Filings
- Form 5472 with a pro forma Form 1120, for a single-member LLC owned by a Canadian
- Form 1120, where the entity is taxed as a corporation
- Form 1040-NR for the owner, where a disregarded LLC earns US business income
- State annual reports, and state income or franchise tax where it applies
- US sales tax registrations and returns, where the entity sells into states where it has nexus
Canadian Filings
- Form T1134, the information return for a foreign affiliate
- Your T1 or your corporation's T2, including dividends from the US entity, foreign tax credits and, where the entity earns passive income, the FAPI rules
- Form T1135, where you hold other specified foreign property over $100,000
Already Own a US LLC? Catch-Up & Compliance Support
Many Canadians formed an LLC online and found out about the filings later. We review the history and bring it current on both sides:
- Each year reviewed to determine whether Form 5472 with a pro forma Form 1120 was required, and any required filings brought current
- Form T1134 in Canada
- How the LLC is classified in the US, and whether that still fits
- How money has come out of it, and how that was reported in Canada
Then we recommend whether to keep it, elect corporate treatment, restructure or wind it down
Where the LLC Is Managed From
If the LLC's key decisions are made in Canada, CRA may consider it resident in Canada, which changes how it's taxed. We check this as part of every review.
US LLC Planning for Canadian Ecommerce Businesses
Ecommerce sellers are often told they “need” a US LLC, to cut a platform's cross-border fees or open US payment accounts. You don't need one to sell to US customers. Sometimes the fee saving is real, but it has to be weighed against a second set of filings and the tax mismatch above. We'll run that comparison with your actual numbers.
Hire an Accountant for Your US LLC: How We Get Started
A US LLC set up without the Canadian side in mind is the most common source of the problems above. With GTA Accounting, the advice, the set-up and both countries' filings come from one team, and they're planned together before decisions are made.
1. Consultation
What the US entity is for, or what you already have.
2. Recommendation
Keep, form, elect or restructure, with the reasons.
3. Set-up or catch-up
Formation and registrations, or prior-year filings brought current.
4. Every year
US and Canadian filings prepared together.
Why Choose GTA Accounting for Your US LLC
- Chartered Professional Accountants. Your file is overseen by a named CPA.
- Advice before paperwork. We'd rather tell you that you don't need an entity than file for it every year.
- Canadian tax checked first. Every US decision is tested against how CRA will treat it.
- Remote service across Canada, with offices in Toronto and Mississauga.
Google Reviews
Client Success Stories
Our Locations
US LLC FAQs for Canadians
When should a Canadian business consider a US entity?
US staff, an office or a warehouse create US tax and legal obligations whether or not you form a US company, and they're often when a US entity becomes worth considering. An entity may also be required by US investors, a bank, a platform, or the way a deal or operation is structured. Selling to US customers from Canada doesn't need one on its own.
I formed my LLC through an online formation service. Can you take it from here?
Yes. Formation services file the paperwork but usually leave the tax side to you. We review how the LLC was set up and classified, check what's been filed so far, and take over the annual filings in both countries.
My LLC hasn't done much. Does it still have filings?
Often, yes. Depending on the state, annual taxes, fees or state filings may still apply even when the LLC had little or no activity. For a Canadian-owned single-member LLC, even money you put in or took out, including paying the formation costs, can count as a reportable transaction for Form 5472. We review what happened in each year before deciding what's owed.
Can you work with my US lawyer?
Yes. Where you already have a US lawyer for contracts or formation, we handle the tax side alongside them: classification, the Canadian treatment, and the annual filings.