Entity Structure for Canadian Investing in US Real Estate

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Entity Structure for Canadian Investing in US Real Estate

Natasha Rooney
Member since 2024 · 50 posts · 36 votes

Hello!

I am wondering if anyone has some insight. As a Canadian investing in the US... which is the best type of entity to go with? It would be for myself and my husband purchasing either SFH or multifamily (2-4 units).

I understand LLC and LLP are not recognized in Canada for tax purposes which would lead to double taxation. Is it best to go with LP/GP? For example registering a LLC first and then using that LLC as the GP in an LP that is registered to my husband and myself?

This is all so confusing to me!

Thanks! Appreciate any insight!

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  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    1y

    @Natasha Rooney As a foreign national, you will always be paying taxes in the US. You can get the mortgage in your personal name OR LLC.

    [email protected]571-200-6180
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  • Chad U.
    Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
    1y
    Quote from @Natasha Rooney:

    Hello!

    I am wondering if anyone has some insight. As a Canadian investing in the US... which is the best type of entity to go with? It would be for myself and my husband purchasing either SFH or multifamily (2-4 units).

    I understand LLC and LLP are not recognized in Canada for tax purposes which would lead to double taxation. Is it best to go with LP/GP? For example registering a LLC first and then using that LLC as the GP in an LP that is registered to my husband and myself?

    This is all so confusing to me!

    Thanks! Appreciate any insight!

    To give you a hint, you are on the right track.  But I would highly advise getting a consultation or advice from a cross border tax specialist versus getting some random half-baked answers on a real estate forum. 
    0Reply
  • Jason MalabuteBusiness Member
    Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 910 votes
    1y

    I strongly recommend working with an accountant who specializes in international tax, particularly cross-border investing between Canada and the U.S. The right structure can vary depending on your specific situation, and using the wrong one can lead to unnecessary double taxation or reporting headaches.

    Malabute & Company CPAs527 Reviews
    WebsiteView Page
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