Chris PrefontaineSerious about making money in the real estate investment business? Free Webinar - REGISTER BELOW!, Smart Real Estate Coach · Chairman, Founder, 4x Best-Selling Author of "Real Estate On Your Terms," Forbes Business Council Member, 3x Inc 5000 Honoree, Global Rank TOP 0.5% Podcast Host

Setting Up Your Entities To Avoid Being Double Taxed #shorts

8 May 2025 · 1 min

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Chris Prefontaine explains why Canadians who own U.S. LLCs often get double taxed: the IRS treats them as pass-through entities while the CRA treats them as corporations. Align your entity structure across both countries to use tax credits and avoid paying twice.

Chapters

A lot of Americans will set up LLCs, but the problem with LLCs for Canadians is the way Canada Revenue looks at an LLC. So they look at it like a corporation, even though it's a flow-through entity and it's going to go to your personal taxes. So in the U.S., you'll pay personal taxes. In Canada, you pay corporate taxes. You just pay double tax. So you want to have, you know, structures that line up, you know, that they're going to be taxed corporately, corporately, or personally, personally. And that way there's tax credits between the 2 countries and you're just not going to double pay. But if you cross them, it doesn't work.