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Thinking of setting up a US LLP which would house a game developed to earn royalties from Steam. No profits early on. 1 Cdn partner and 1 US partner. Alternative is to have a flow-through for myself in US and have Cdn partner provide zero cost contracting services, to be paid once game is developed.

What are tax consequences of setting up US flow-through, paying tax myself on all profits, and expensing contracting costs when money becomes available to pay a contractor for work they have done an billed to be paid when funds available?
Limited Liability Partnership (LLP) Self-Employment Tax

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