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I came across your online videos about the potential double taxation for Canadians holding real estate under a US LLC. I understand your recommendation is to instead create a Limited Partnership in which the limited partner is the Canadian individual and the general partner a US LLC. Could you please clarify how the US LLC acting as the general partner would be treated for tax purposes (disregarded entity, LP, corp) to avoid double taxation?
Hi John,
The LLC should be owned by a single member and therefore it will be classified as a disregarded entity. A disregarded entity does not have to file a separate US tax return which will simplify and reduce your compliance costs.