Chapter 04 · Sale
Selling via LLC in Florida: Canadian Owners
LLC structure for Florida real estate sale and tax implications for Canadians.
Direct answer · 60-second summary
The 60-second version
- Canadian single-member LLC = transparent to US
- FIRPTA 15% still applies
- IRS sees through LLC (disregarded)
- LLC benefits: limited liability
- LLC drawbacks: formation costs, state taxes
- Selling property via LLC = selling LLC share
- No FIRPTA benefit from LLC
- Consult cross-border tax pro
Acronyms used in this guide
- LLC — Limited Liability Company
- FIRPTA — Foreign Investment in Real Property Tax Act
- IRS — Internal Revenue Service
- TCP — Taxable Canadian Property
- CRA — Canada Revenue Agency
LLC: Florida property structure
Canadian buys Florida property via LLC (Delaware or Florida). Protects from legal liability. But IRS sees through (disregarded entity if single-member).
FIRPTA applies to LLC too
Sale of Florida real estate via LLC owned by Canadian: FIRPTA 15% withholding applies. IRS does not distinguish direct sale vs. LLC sale for FIRPTA.
How to structure LLC sale
Sell property by LLC deed transfer. Buyer's title holds on LLC as owner. Buyer can assume LLC or dissolve after acquisition.
Canadian tax considerations
Canadian LLC owner = foreign property (TCP). Gains on sale = taxable in Canada (50% inclusion). LLC advantage = zero tax (liability only).
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
Disclaimer
This guide is for educational purpose only.
For concrete decisions, consult a licensed attorney.