Country dossier · 4 facts on file · audited 2026-08-27
Form FS-04 · Country dossier: CACanada · Not a government filing
Canada is the page where an honest registry tells you to slow down: the CRA's long-standing position treats US LLCs as corporations, and the resulting timing mismatch with US pass-through taxation is the classic double-tax trap. Canadian cross-border advisers routinely steer clients toward a US C-corp or LP instead. Read this one before the calculator, not after.
Canada has a US income tax treaty (IRS treaty list) — but treaty relief is precisely what the LLC classification mismatch below tends to break for Canadian members.
Source: IRS — United States income tax treaties A to Z
Canada is on Stripe's fully supported list — a Canadian company takes Stripe payments directly. Payments access is not a reason for Canadians to form US entities.
Source: Stripe — global availability page
The CRA has long classified US LLCs as corporations for Canadian tax (a US check-the-box election does not change its view). The US taxes you on LLC income as it arises; Canada taxes distributions from what it sees as a foreign corporation — and the mismatch can deny credit for the US tax you paid personally. A Canadian-managed LLC can even be dragged into Canadian corporate residence. Standard cross-border advice: Canadians should generally avoid US LLCs.
Source: CRA IT-343R and technical interpretation 2018-0744121C6 (corroborated)
Canada is not on Mercury's prohibited-countries list and Wise supports Canadian residents — if, after advice, a US entity still makes sense for you, banking is routine.
Source: Mercury prohibited-countries policy (corroborated); Wise eligibility
Filed under: CA · not legal or tax advice
Yes. Forming and owning a US LLC requires no US citizenship, residency, visa, or visit — you file online from Canada and appoint a registered agent in your chosen state. The wizard walks the exact steps for non-US founders.
Canada has a US income tax treaty (IRS treaty list) — but treaty relief is precisely what the LLC classification mismatch below tends to break for Canadian members.
State fees differ by hundreds of dollars across the 51 US jurisdictions and change often — so we never quote them in prose. The True Cost Calculator shows every state's filing fee, recurring fees, and a 3-year total, each figure dated and checked against the state's official schedule.
No US entity removes your home-country obligations: you remain a Canada tax resident, and local rules on foreign companies apply on top of the US side. Treat the dossier above as a map of what to ask a licensed adviser in Canada — not as advice.