How to Transfer Money from Your US LLC to Canada
Complete guide to sending money from your US business bank account to Canada (CAD). Compare fees, speeds, and regulations for Canada-bound transfers.
Quick Facts
In This Guide
Overview
If you own a US LLC and need to transfer money to Canada, you have several options ranging from traditional bank wires to modern fintech services. The best choice depends on the transfer amount, urgency, and whether you prioritize low fees or fast delivery.
Important Note for Canada
Canada is one of the easiest countries to transfer to from the US due to proximity and strong banking relationships. Big Five banks (RBC, TD, BMO, Scotiabank, CIBC) all handle USD transfers natively.
Best Transfer Methods
Wise
Best for most transfers. Extremely fast to Canadian banks.
Bank Wire (SWIFT/Fedwire)
Very fast due to US-Canada banking corridor. Many Canadian banks have US branches.
OFX
Good for larger amounts. Canadian presence.
PayPal
Convenient but expensive. Only for small, quick transfers.
Fees & Speed Comparison
| Service | Fees | Speed | FX Rate |
|---|---|---|---|
| Wise | 0.4–0.7% | Within hours to 1 business day | Mid-market rate |
| Bank Wire (SWIFT/Fedwire) | $15–$40 | Same day to 1 business day | 0.5–2% markup |
| OFX | No transfer fee | 1–2 business days | 0.4–0.8% markup |
| PayPal | 2.5–4% | Instant to PayPal, 1–2 days to bank | 3–4% markup |
Regulations & Requirements
When transferring money to Canada, be aware of these regulatory requirements:
- FINTRAC requires reporting of transfers over CAD 10,000
- No foreign exchange controls
- Canadian banks are highly familiar with US transfers
Common Pitfalls to Avoid
- Canadian transit number (5 digits) + institution number (3 digits) required
- Some Canadian banks charge CAD 15–25 receiving fee for international wires
- Do not confuse Canadian routing numbers with US ABA routing numbers
Tax Implications
Transferring money from your US LLC to Canada has important tax considerations on both sides:
- No US withholding on LLC distributions (disregarded entity)
- Canadian residents must report worldwide income to CRA
- US-Canada tax treaty is comprehensive — generally favorable
- FBAR filing required if aggregate foreign accounts exceed $10,000
- Form T1135 (Foreign Income Verification) required for Canadian residents with foreign assets over CAD 100,000
Pro Tips for Transferring to Canada
- Wise or a direct bank wire are both excellent for US-Canada transfers
- TD Bank operates in both the US and Canada — may offer internal transfers
- CAD/USD rate is closely watched — use rate alerts for large transfers
- Consider keeping a USD account at a Canadian bank (most Big Five offer this)
FBAR & US Reporting Requirements
FBAR (FinCEN Form 114): If you have foreign bank accounts (including in Canada) with an aggregate balance exceeding $10,000 at any time during the year, you must file an FBAR by April 15 (automatic extension to October 15).
FATCA (Form 8938): If your foreign financial assets exceed $50,000 at year-end (or $75,000 at any time), you must report them on Form 8938 with your tax return.
Form 5472: Your foreign-owned LLC must file Form 5472 annually to report transactions with foreign related parties, including transfers to your account in Canada.
Next Steps
File Form 5472
Report your LLC's transactions with foreign owners. Required annually.
FBAR Guide
Learn about foreign bank account reporting requirements.
Open a US Bank Account
Guide to opening a US business bank account for your foreign LLC.
Canada LLC Tax Guide
Complete tax guide for Canada residents who own a US LLC.
Get Tax Filing Reminders
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