If you have searched for how to form an LLC in Canada, here is the short answer that saves you time: you cannot, because Canada does not have LLCs. The limited liability company is a United States structure, and there is no Canadian equivalent by that name.
That sounds like a problem, but it is not. Canada has structures that do the same job. Here is what is going on and what to use instead.
Why Canada has no LLC
The LLC is a creation of US state law. It blends the limited liability of a corporation with the pass-through taxation of a partnership, so profits are taxed once, in the owners' hands. Canada simply never adopted that hybrid. Here, the main business structures are the sole proprietorship, the partnership, and the corporation.
So when a Canadian resource, a bank, or a client mentions an LLC, they are either speaking loosely or referring to the US concept. The Canadian tool that gives you limited liability is the corporation.
What to use instead
Match the goal to the Canadian structure.
| What you want | Canadian structure |
|---|---|
| Limited liability and a separate legal entity | A corporation (federal or provincial) |
| The simplest, cheapest solo setup | A sole proprietorship |
| Two or more owners, kept simple | A partnership |
| Liability protection with multiple owners | A corporation with more than one shareholder |
For most people who were looking for an LLC, the answer is a corporation. If you are weighing it against staying unincorporated, our guide on sole proprietorship versus corporation walks through the trade-offs.
The US LLC trap for Canadians
Sometimes a Canadian is tempted to form a US LLC anyway, to serve US clients or because a US platform suggested it. Be careful. The Canada Revenue Agency generally treats a US LLC as a corporation, not as the pass-through entity it is in the US. That mismatch can create double taxation and cost you the treaty relief you were expecting.
Where Korporex fits
If what you actually want is the limited liability an LLC provides, a Canadian corporation is the equivalent. Korporex files your federal or Ontario incorporation online, with the share structure and minute book set up for you.