LLC Financing for Canadian Investors
Close US investment property mortgages directly in your LLC for liability protection and clean portfolio management. Unlike Canada where investment properties are typically held in personal name, the US LLC structure creates a legal wall between your investment assets and your personal wealth. We handle the entire process from Canada — LLC formation in your chosen state, EIN (Employer Identification Number) application with the IRS, registered agent setup, operating agreement drafting, US bank account referrals for your entity, and DSCR loan financing that closes in the LLC name. Formation typically takes 1-2 weeks and costs $500-$1,500 through our cross-border legal partners.
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Protect Your Assets with LLC Ownership
In Canada, investment properties are held in personal name. In the US, serious investors use LLCs for liability protection, asset separation, and professional portfolio management. DSCR loans make entity financing easy.
Liability Protection
An LLC creates a legal wall between your US investment properties and your personal assets in Canada. Lawsuits, claims, and liabilities stay contained within the LLC entity, meaning your Canadian home, savings, and other assets cannot be reached. This is the single most important reason Canadians use LLCs for US real estate — and it is standard practice among professional investors.
Close in Entity Name
DSCR loans close directly in your LLC's name — the LLC is the borrower, the property owner, and the entity on the title. This eliminates the need for personal guarantees on the property itself, and keeps your personal name off public property records. For Canadian investors managing portfolios remotely, entity-level ownership provides cleaner documentation and simpler tax reporting.
Asset Separation
Keep each property or market in a separate LLC to isolate risk across your portfolio. If one property faces legal issues, your other investments are protected behind separate entity walls. Many Canadian investors use one LLC per property for maximum protection, or one per state for simplicity. Series LLCs in states like Wyoming and Delaware offer multiple compartments under one umbrella.
Canadian-Owned LLCs Welcome
Our lenders are experienced with foreign-owned LLCs and understand the unique documentation requirements for Canadian members. Canadian ownership does not prevent you from accessing the same DSCR loan products, rates, and terms available to US investors. The LLC simply lists you as the sole member or managing member, with your Canadian passport as the identifying document.
Full Formation Support
We connect you with cross-border legal partners who handle LLC formation, EIN application, registered agent setup, and operating agreement drafting — all completed remotely from Canada. The entire process takes 1-2 weeks and costs $500-$1,500 depending on the state and complexity. Our partners also file the annual reports and maintain your entity in good standing year after year.
US Bank Account Setup
Your LLC needs a US bank account for receiving rent, paying the mortgage, covering property expenses, and managing cash flow. We provide referrals to banks experienced with foreign-owned entities including Mercury, Relay, and traditional banks that accept non-resident LLC owners. Some banks allow fully remote setup while others require a brief in-person visit during your first US trip.
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LLC Formation & Financing Requirements
Setting up a US LLC as a Canadian investor involves a few key steps. Here is what you need and how we make the process seamless from start to finish.
Requirements
- Valid Canadian passport for identity verification with the state filing office, your registered agent, and the DSCR lender.
- Chosen state of formation — typically the state where you are investing, or Wyoming or Delaware for multi-state portfolios.
- Registered agent in the state of formation to receive legal correspondence and state filings on behalf of your LLC.
- EIN (Employer Identification Number) from the IRS — this is your LLC's tax ID, required for banking and financing.
- Operating agreement defining ownership, management authority, and distribution rules — required by most lenders and banks.
- US bank account opened in the LLC's name for rent collection, mortgage payments, and property expense management.
- Minimum 25-30% down payment sourced from your Canadian bank account and wired in USD to the closing agent.
How We Help
- Our cross-border legal partners handle LLC formation, EIN application, registered agent setup, and operating agreements — all completed remotely.
- We help you choose the optimal state of formation based on your investment strategy, number of properties, and asset protection goals.
- We provide referrals to US banks that accept foreign-owned LLCs, including options for fully remote account opening.
- Our team ensures your LLC documentation meets lender requirements so there are no delays or surprises during DSCR loan underwriting.
- For multi-property investors, we help structure multiple LLCs or Series LLC arrangements for optimal liability isolation.
- We connect you with cross-border tax accountants who understand Canadian-owned US LLC tax reporting on both sides of the border.
- Annual LLC maintenance — state filings, registered agent renewals, and good standing certificates — is handled by our legal partners.
Questions About LLC Financing
Everything Canadian investors need to know about US LLC ownership and entity financing. Can't find your answer? Book a call with our team.
LLC Basics
An LLC (Limited Liability Company) provides: liability protection (a lawsuit against the property stays within the LLC, protecting your personal assets in Canada), cleaner portfolio management (each property or group of properties in its own entity), potential tax benefits (consult a cross-border accountant), and professional credibility with US vendors, contractors, and property managers.
Yes. Canadians can form LLCs in any US state. Popular choices are: the state where you're investing (simplest), Wyoming (strong privacy and asset protection laws, low fees), or Delaware (business-friendly laws). Formation takes 1-2 weeks and costs $500-1,500 including registered agent fees. We connect you with cross-border legal specialists who handle the entire process.
Banking & Taxes
Yes. Your LLC needs a US bank account for receiving rent, paying the mortgage, and managing property expenses. We provide referrals to banks experienced with foreign-owned LLCs. Setup typically requires: LLC formation documents, EIN (Employer Identification Number), passport, and sometimes an in-person visit (though some banks allow remote setup).
US LLCs owned by Canadians are typically treated as pass-through entities for US tax purposes. Rental income is reported on your US tax return (Form 1040-NR) and your Canadian return. The Canada-US tax treaty prevents double taxation through foreign tax credits. LLC structure can offer certain deductions and depreciation benefits. We strongly recommend a cross-border tax accountant for setup.
An EIN (Employer Identification Number) is like a Social Security Number for your LLC — it is a unique 9-digit identifier issued by the IRS. Your LLC needs an EIN to open a US bank account, file US tax returns, and apply for DSCR financing. Canadians can obtain an EIN by calling the IRS directly or by having an authorized representative apply on their behalf. Our legal partners include EIN application as part of the LLC formation package.
Formation & Maintenance
The best state depends on your investment strategy. Most Canadian investors form their LLC in the state where they are buying property — this is the simplest approach and avoids registering as a foreign entity. Wyoming is popular for its strong asset protection laws, low annual fees ($60/year), and privacy protections. Delaware is known for business-friendly courts. If you plan to own properties in multiple states, a Wyoming or Delaware LLC registered as a foreign entity in each investment state is a common strategy.
Yes, but this requires a deed transfer (typically a quit claim deed) and may trigger due-on-sale clauses in existing mortgages. If you purchased a US property in your personal name, transferring it into an LLC after closing should be discussed with your lender and a real estate attorney. For new purchases, it is much simpler to close directly in the LLC from the start — which is why we recommend LLC formation as the first step before acquiring property.
Annual LLC maintenance costs include: state annual report fees ($50-$300 depending on the state), registered agent fees ($100-$300 per year), US tax return preparation ($300-$800 for a single-property LLC), and Canadian tax return updates. Wyoming has some of the lowest annual fees at about $60 per year. Total annual maintenance typically runs $500-$1,500 per LLC — a modest cost for the liability protection and professional structure it provides.
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