• An unlimited liability corporation (ULC) is a corporate structure used in the three provinces of Canada.

  • Shareholders of unlimited liability companies (LLC) are liable for debts and losses incurred by the company in the event of bankruptcy; in turn, they receive tax breaks on their dividends and capital gains.
  • Unlimited Liability Corporations (ULCs) are treated as corporations for Canadian tax purposes, but as pass-through entities for US tax purposes.