Introduction – Lowering Your Tax Burden when Investing in
the United States
Various tax efficient vehicles are available to Canadians who
purchase and hold assets, or carry out business in the United
States. Generally, it is best for Canadians to avoid using a
Limited Liability Corporation (LLC), a popular investment vehicle
that is only available south of the border. The Canadian and the
United States tax authorities classify an LLC differently, and this
difference often leads to double taxation of a Canadian taxpayer
who is a member of an LLC. Consequently, it is generally advisable
for Canadian taxpayers to avoid using LLCs to structure their
affairs. In light of the recently lowered U.S. Federal corporate
tax rates, there are more tax efficient investment structure for
those conducting business or looking to invest in the United
States.
