How do I set up an LLC in Canada?

In order to create an LLC in Canada, an investor must prepare the Articles of Association, but also an Initial Registered Office address and first Board of Directors. These are questionnaires that need to be filled out and in which information about the registered address and directors of the company are provided.

How much does it cost to form a LLC in Canada?


Different Canada entity types Cost Draft invoice
Tax resident LLC US$12,200 View invoice PDF
Limited partnership US$12,500 View invoice PDF
PLC US$12,100 View invoice PDF
Branch of a foreign company US$13,100 View invoice PDF

How does an LLC work in Canada?

LLCs are disregarded entities or partnerships. Therefore their income is taxed by the IRS at the individual tax rate. As a resident corporation of Canada, LLCs are also required to report their income to the CRA. LLC income is taxed at the same corporate rate as Canadian corporations.

How can a Canadian open a US LLC?

Foreign citizens and foreign companies can form an LLC in the USA….The steps to form your foreigner-owned LLC are:

  1. Select a State.
  2. Name Your LLC.
  3. Hire a Registered Agent Service.
  4. File Your LLC With the State.
  5. Create an LLC Operating Agreement.
  6. Get an EIN.
  7. Get a Physical US Mailing Address.
  8. Open a US Bank Account.

What are the benefits of an LLC in Canada?

Benefits of incorporating provincially and federally

  • Easier access to capital. Corporations can borrow money at lower rates.
  • Lower tax rates. Corporations are taxed separately from their owners.
  • Limited liability. Shareholders are not responsible for a corporation’s debts.
  • Separate legal entity.
  • Continuous existence.

Can a Canadian set up an LLC in the US?

Anyone can form a limited liability company (LLC) in the USA; you don’t need to be a US citizen or a US company. Foreign citizens and foreign companies can form an LLC in the USA.

Can a Canadian company own a US company?

A very common option is for the Canadian company to create a subsidiary incorporated in the United States. American corporations are organized under state law and each state has its own rules for creating and operating corporations.