How are US LLCs taxed in Canada?

US LLCs (Limited Liability Companies) are generally not taxed as entities in Canada. Instead, their profits or losses are passed through to their owners or members, who are then required to report the income on their personal tax returns in Canada. This is known as "flow-through" taxation.

If the LLC has a permanent establishment (PE) in Canada, it may be subject to Canadian corporate income tax on the portion of its profits that are attributed to the PE. A PE is generally defined as a fixed place of business through which the business of an enterprise is carried on, such as a branch, an office, or a factory.

If the LLC is conducting business in Canada through a PE, it may also be required to register for and charge Goods and Services Tax/Harmonized Sales Tax (GST/HST) on its taxable supplies of goods and services made in Canada.

It's important to note that the tax treatment of an LLC in Canada may depend on the specific circumstances of the business and the nature of its activities in Canada. It's advisable to seek the guidance of a tax professional to determine the tax implications of your LLC's activities in Canada.