Commonly Used Terms
This term is used by professionals in Canada as a way of describing consulting and compliance services which require knowledge of both Canada and U.S. tax law and procedures.
Term is used to describe the preparation and compilation of the necessary tax forms.
Limited Liability Company (LLC):
U.S. entity which is treated as a partnership for U.S. tax purposes but which can provide limited liability for its members. Generally speaking, Canada does not treat an LLC as a partnership.
U.S. corporation that makes a timely filed election to be treated as a flow through entity for U.S. tax purposes. Generally speaking, Canada does not accept this treatment as a flow through entity for Canadian tax purposes.
This is a newsletter distributed by our firm to other professional accounting and legal firms throughout Canada and the United States. This newsletters purpose is to raise awareness of U.S. and cross-border issues and is not meant as a comprehensive source of information.