CRA is considering whether some types of US partnerships are corporations for Canadian tax purposes

CRA accepts that separate legal personality is not a touchstone for classification of an entity as a corporation so that, for example, the existence of separate legal personality for various types of US limited partnerships does not cause them to be corporations rather than partnerships. However, CRA is considering whether Florida limited liability limited partnerships and limited liability partnerships are corporations or partnerships. CRA appears to be tempted by the view that they are corporations given that "they seem to have both legal personality and full, or at least very extensive, limited liability for all members," i.e., liability protection which "seems to go beyond the type of limitation of liability applicable to partnerships governed by the laws of the Canadian provinces." CRA is inviting comments on this issue.

CRA also noted that it accepts that LLC are corporations. The reasoning in Anson suggesting that an LLC is transparent respecting the treatment of its income would also suggest that LLLPs and LLPs are partnerships.

Neal Armstrong. Summary of 28 May 2015 IFA Roundtable, Q. 3, 2015-0581511C6 under s. 96.