- Who this is for
- Owners resident in Canada
- What we file
- US entities, in any state
- What we do not file
- Anything in Canada
- EIN timing
- Four to eight weeks without an SSN
US filings only
A US company for a Canadian business
There is no residency requirement to own a US entity, and for some Canadian businesses a US company genuinely unlocks something. For others it adds a second country's paperwork in exchange for nothing. We will tell you which one you are.
- Good reasons
- Procurement, investment, a genuine platform requirement
- Poor reasons
- Tax reduction, or a rule that changed
Start with why, because two of the usual reasons do not survive contact.
Canadian founders come to us with a US company already decided and a reason attached. Sometimes the reason is solid, a large American customer whose procurement rules make a foreign supplier genuinely difficult, or an investment round where the fund expects a Delaware corporation. In those cases the entity is doing real work.
Often the reason is something someone said in a forum. A platform requirement that was relaxed two years ago. A tax saving that does not exist for a Canadian resident, because Canada taxes worldwide income and a US entity does not change where you live.
We would rather spend twenty minutes establishing which of those you are dealing with than take a fee for a company that will spend the next five years generating filings and doing nothing else. Occasionally the answer is that you do not need one, and that is a perfectly good outcome of a first call.
The six reasons we hear, ranked honestly.
| The situation | Does it need a US entity? | What we would look at first |
|---|---|---|
| US customers will not pay a foreign company | Sometimes | Large US buyers and government contracts often have procurement rules that make a domestic supplier far simpler. This is a real driver. |
| Payment processors and marketplaces | Often | Some platforms price, verify or approve US entities differently. Worth confirming the actual requirement before forming, because policies change and assumptions persist. |
| Selling on US marketplaces | Sometimes | Several marketplaces onboard non US sellers directly. Check whether the restriction you were told about still exists. |
| Raising money from US investors | Usually | US funds frequently require a Delaware C corporation. If a round is genuinely in progress this is the strongest reason on the list. |
| Lower tax | Almost never | Canada taxes its residents on worldwide income. A US company does not remove that, and it adds a second country's filings. If someone told you otherwise, be sceptical. |
| Looking more established to US buyers | Rarely worth it alone | A US address and entity does change perception. It also creates permanent filing obligations. Weigh it honestly. |
- Both countries
- Have a view. They do not always agree.
- We cover
- The US side, properly
What you take on by forming in the US.
What a Canadian owner of a US company has to keep in view
- You are still a Canadian tax resident. Canada taxes worldwide income. The US entity does not change where you live or what Canada expects from you.
- Form 5472 with a pro forma 1120. A US LLC that is at least a quarter owned from outside the US files this every year, whether or not it traded. The penalty starts at twenty five thousand dollars.
- An LLC is not treated the same way on both sides. The US may disregard it while Canada may not, and that mismatch is the single most consequential structuring question a Canadian owner faces.
- The Canada United States tax treaty affects how income is taxed and where. Whether it helps you depends on your facts, not on a general rule.
- Payroll follows the worker. If you hire someone physically in a US state, that state's withholding and unemployment obligations apply regardless of where the company was formed.
- You still need a registered agent with a physical address in the state of formation. A Canadian address does not satisfy it.
Where our work stops. LlamaFilings files in the United States only. We do not incorporate companies in Canada, we do not file with Corporations Canada or any provincial registry, and we do not prepare Canadian returns or act on CRA matters. What we do is the US entity, the US tax number and the US filings that follow, for owners who happen to live in Canada. Where the two systems meet, we say so plainly and work alongside your Canadian accountant rather than guessing.
Common questions
Yes. There is no citizenship or residency requirement to own a US LLC or corporation. You do not need a green card, a visa, a US address of your own or a US partner. What you do need is a registered agent in the state, a route to an EIN, and a clear view of what both countries will expect afterwards.
This is the question that matters most for Canadian owners and the one where generic US advice is least reliable. The two countries do not always classify an LLC the same way, and the mismatch can produce an outcome neither system intended. We will not give you a one line answer here, because the honest answer depends on your facts and on what your Canadian accountant says about the Canadian side.
Usually not, and treating that as the goal is how people end up worse off. Canada taxes its residents on worldwide income. Adding a US entity adds US filings on top of what you already owe. There are good reasons to form in the US. Tax reduction is rarely one of them for someone living in Canada.
If nobody in the ownership holds a US Social Security number or ITIN, the IRS online tool is closed to you and the application goes in on paper on Form SS-4. That takes four to eight weeks in practice. The EIN page covers both routes.
No. We work in the United States only. For the Canadian entity you will need a Canadian provider or your own accountant, and we are happy to coordinate with them on the US side.
Often, and Canadian residents generally have an easier time of it than applicants from many other countries. It still depends on the institution and on having the EIN and formation documents in order first. We prepare the document set and tell you what we currently see working. We take no commission from any bank.
Not sure whether you need a US entity at all?
Tell us what is actually driving it. If the answer is that you do not need one, we will say so on the first call.