While Paul provides you links to some good information in his standard form welcome message, keep in-mind that areas of finance, regulation and taxation are somewhat different in Canada ... and different again in PQ from RoC.There is a small active cadre of Canadians here on BP, so when you do have a question specific to home, feel free to give a shout.

I would like to incorporate before getting into dealing so i can officially do business as the company (marketing, selling, dealing) so the question i have is what state is good to incorporate (i am thinking of an LLC) from the viewpoints of taxation, privacy/anonymity, asset protection, annual fees?

The income I earn from flipping homes can't simply be passed through and then subject only to my income tax.  

@Ned Carey I am still learning all the fun and exciting aspects of taxation in real estate.

Of course, investing out of country comes with tribulations of its own - you need a good accountant and real estate / corporate lawyer, with cross-border experience, on your team to ensure you set things up correctly from a legal and taxation perspective.

Thanks @Kevin Macdonald ,To answer your second question, yes you should find a qualified Enrolled Agent licensed to practice before the IRS to assist you with your tax return.EAs are required to take CE in taxation whereas most other designations are not.

If you need this aspect sliced up, @Steven Hamilton II ought to jump in, I stay out of taxation as I don't keep up with it, that's why I have a CPA. :)

My aim is to set up an entity with the correct legal and taxation structure for buying property in the US.

Yes, this avoids transfer tax, at least in OH.

Taxation of net profits should be looked at.