Company structure for Canadians investing in US rentals

[Arhum Nomani]

Hi, this post is relevant to Canadian residents who are investing in US rental properties. With regards to setting up a company structure for these properties that will avoid double taxation on rental income in US and Canada, I've read several posts that discourage holding the US properties under an LLC because the CRA does not consider it to be a flow through entity and hence will tax it as a US corporation which leads to double taxation.

My question is 2 fold: 

1) If a Canadian resident has a US corporation (could be an LLC), which owns rental properties, and there are Zero payments from the US corporation to a Canadian citizen or company, how can Canada tax the US corporation, or the corporation owners, when the US Corp is not doing business in Canada? ( this scenario assumes all US rental income is kept and reinvested in the US...and not brought back to Canada)

2) I would really like to hear from Canadian residents here in on BP who currently own rental properties in the US within an LLC. How's their experience been so far with regards to filing taxes ? and how are they filing taxes in both US and Canada?

Thanks in advance for your help!

Arhum