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I am a Canadian citizen working in the US on TN visa. I wish to invest in rental property in the U.S. However, to get credit lines for investing in multiple rental properties, I am asked to form an LLC. However, your advice is that LLC will lead to double taxation when filing taxes in Canada. Then what to do?
Hi Tippu,
LLCs cause double taxation for Canadians. Instead of forming a LLC to purchase rental properties, setup a US Limited Partnership to make the purchases. A US LP is treated as a flow through entity for both US and Canadian purposes, and provides liability to protection to limited partners, similar to a LLC.