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A comment on Ask HN: What's the best way for foreigners to incorporate in the States?. Parent comment

Re:Ask HN: What's the best way for foreigners to incorporate... by cmer on Friday October 29, 2010 @12:30AM (#1846123)
US LLCs are usually a pain in the ass for non US residents. At least, it is for Canadians and I was strongly adviced not to do that by my tax specialist. C Corp is the way to go for non residents afaik.
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Re:Ask HN: What's the best way for foreigners to incorporate... by philiphodgen on Friday October 29, 2010 @12:44AM (#1846173)
CRA says LLCs are taxed like corporations. The IRS says they are disregarded or taxed as partnerships (I.e., passthrough). This mismatch causes great pain. :-)

A lot of times this mismatch (an entity is treated as a corporation in one country and something else in another country) can be used for fun and profit. These are called "hybrid entities" and they bedevil the government.

I like that. :-)

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