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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15332
Experience:  15years with H & R Block. Divisional leader, Instructor
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I'm raising money low budget feature film being

Customer Question

Hello. I'm raising money for a low budget feature film being produced in the US.
Some of our prospective investors are Canadian residents. What are the tax implications for them based on the profit or loss when the film is completed?
Connected to this...what is the best taxation type to use for our LLC considering domestic and foreign investors?
Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
HelloCanadians find that U.S. limited partnerships (instead of LLCs or C corporations) work best for them and match with Canada’s tax system.Foreign individuals cannot be members of S corporations, they can be owners of an LLC or members.The members are partners for US tax purposes and the foreign members would have tax withheld on their portion and would be required to file a US 1040NR. Canada gives them a credit on the taxes paid to US.All partners would receive a K1 which shows their share of income or loss. I have a published guide that you may wish to look over. It is still relevant for tax.