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US LLC From Canada: Formation, Tax and Banking (2026)
Canadian founders form US LLCs to sell to American customers and work with US platforms. The US side is simple, but Canada taxes US LLCs in a way that surprises many owners. Here is what to know before you start.
Yes, a Canadian resident can form a US LLC online with no SSN, US visa or US visit. The catch is tax: the CRA generally treats a US LLC as a corporation, while the US treats a single-member LLC as transparent, which can create double tax and extra Canadian reporting. Many Canadians choose a different structure after advice, so speak to a cross-border accountant first.
Why Founders in Canada Form a US LLC
- Selling mainly to US customers who expect a US company
- US platforms, investors or contracts that require a US entity
- Holding US assets or operations
Tax and Rules for Residents of Canada
| Point | What applies |
|---|---|
| How the CRA sees a US LLC | Generally as a foreign corporation, not a flow-through entity |
| How the IRS sees it | A single-member LLC is disregarded; profits are the owner’s |
| Result | A mismatch that can cause double tax without careful planning |
| Canadian reporting | Foreign affiliate (T1134) and foreign property (T1135) forms may apply |
| US-Canada tax treaty | Yes, but treaty relief for LLC income is limited |
Our tax team, including M. Hassan, CPA, handles the US filings such as Form 5472. For home-country tax, speak with a local adviser.
Banking and Payments From Canada
Canada is not on Mercury’s prohibited-countries list, and Canadian residents usually have good access to US fintechs. Stripe also supports Canadian businesses directly. See our bank account guide and Stripe guide.
How to Form a US LLC From Canada
- Choose a state: Wyoming or New Mexico for most, Delaware for US investors
- We check the name and file with the state
- We get your EIN as a foreign applicant, without an SSN
- You receive your documents and apply for banking and payments
- Each year: the state filing and Form 5472
Common Mistakes to Avoid
- Forming an LLC without cross-border tax advice. A US corporation or Canadian company may suit you better.
- Missing T1134 or T1135 filings in Canada.
- Skipping Form 5472 because the LLC had no income.
What a US LLC From Canada Costs Each Year
Forming a US LLC from Canada is a one-time cost plus a few yearly filings. Our all-in packages start at $190 for New Mexico and $199 for Wyoming, and include the state fee, a registered agent, your EIN and a US mailing address for the first year. After that, plan for three things every year: the state filing (Wyoming’s annual report is $60 for most small LLCs, and New Mexico has none), your registered agent renewal, and Form 5472 with a pro forma Form 1120 if the LLC is single-member and foreign-owned.
Most founders in Canada choose Wyoming or New Mexico because the yearly cost stays low. Delaware makes sense mainly if you plan to raise money from US investors.
Is a US LLC From Canada Right for You?
A US LLC from Canada is a strong tool when it solves a real problem, such as getting paid by US clients or selling on US platforms. Before you order, check these points:
- Not just for Stripe. Stripe already supports businesses in Canada directly, so a US LLC makes most sense when US customers, marketplaces or investors expect a US company.
- Banking is usually workable. Founders in Canada generally have access to US fintechs, though every application is reviewed individually.
- Tax treaty. There is a US-Canada tax treaty, which can affect how some US-source income is taxed. Ask a tax adviser how it applies to your LLC.
- Every year, even with no income. A foreign-owned single-member LLC files Form 5472; missing it can cost $25,000.
Not sure? Message us on WhatsApp with what you sell and where your customers are. We will tell you whether a US LLC from Canada is worth it before you pay anything.
US LLC From Canada: FAQs
Can a Canadian own a US LLC?
Yes. Canadians can own a US LLC without an SSN, US visa or US visit.
Is a US LLC a good idea for a Canadian?
Often not without planning. Because the CRA treats a US LLC as a corporation, many Canadians face double tax. Get cross-border tax advice first.
Do Canadians need a US LLC for Stripe?
No. Stripe supports Canadian businesses directly.
How much does it cost to form a US LLC from Canada?
Our all-in packages start at $190 for New Mexico and $199 for Wyoming, with the state fee, registered agent, EIN and a US mailing address for the first year included.
How long does it take to form a US LLC from Canada?
Wyoming online filings are often approved the same day, and we then get your EIN, usually within 24 hours. You can do everything online from Canada.
Start Your US LLC From Canada
One all-in price with the state fee, registered agent and EIN included.
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