Should I elect corporate treatment for my LLC to avoid the CRA double tax?
My accountant told me I should file Form 8832 to elect corporate taxation for my single-member LLC so that the CRA and IRS treat it the same way. He says this avoids the hybrid mismatch problem. But won't that mean my LLC has to pay U.S. corporate tax now? And what about the Form 5472 requirement? I need to understand the trade-offs before making this irreversible decision.
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