C corp. & FLP Setup for Canadian citizen!

6 Replies

Could someone please help me connecting with the right law firm who has opened C-corp & FLP for any Canadians doing business in the U.S.? I want to setup the entity as soon as possible and looking for a good lawyer/attorney who can help me do that professionally.

@Parveen Tiwari

Welcome to BP.

How have you determined that a C-corp and/or LP are the vehicles best fitting your needs?   


I read someone post at Google and that's what they got as canadian. Not sure if that's the right one to go with? 

I'm not an expert on this, but my understanding is that C-Corps are double taxed.  That is to say that the shareholders are taxed on payroll and the corporation is taxed on earnings.

Most real estate entities are formed as LLCs or S-Corps for that reason.  All three forms should give you protection of your personal assets against corporate liability, as long as certain procedures are followed.

Talk to a qualified business attorney, tax attorney and/or CPA to get better advice.

@Parveen Tiwari

Looks like you are in the GTA.  In that case, look up Jason Ansel of Altro Levy.  They are experts in cross border tax and legal strategies, and can provide a consultation for your best structure to use.  

@Charlie MacPherson

As a Canadian, @Parveen Tiwari 's taxation considerations will be a little different than yours.

Parveen: if you own U.S.A. property directly in your name, or establish a flow-though entity {LP, S-corp, LLC (pending elections)} you will not be able to control when earnings are repatriated to Canada. When income is repatriated, there will be a withholding made by the IRS (typically 30%) and you will also be taxed by the CRA on the delta between the U.S.A. withholding and your marginal tax rate at home.

If you incorporate an entity in the U.S.A. {C-Corp or LLC (pending elections)} which will own the property - in turn you will be a direct or indirect {via a Canadian corporation}, share owner of this company. With such a structure the company will pay the corresponding U.S.A. corporate tax rate on net income but you control wether the after tax earnings are retained in the company (and in the U.S.A.) or repatriated to Canada (in the form of a dividend). There will still be withholding taxes when capital is repatriated, but they could be lower than 30% depending on your ownership organisation.

My best advice would be to find yourself a reputable Canadian accountant and attorney with cross boarder real estate experience. I do not have first-hand experience with any in your area, but you could start with reaching out to George Dubé (GeorgeDube.com).

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