How would a business co-owned by a US citizen and a Canadian citizen file taxes?

I am thinking of forming a LLC or Corp with a Canadian collegue of mine, but a bit confused about tax time. To make matters more complicated, this is an internet business tied to a bank account in the US.

Online Movies DVD4Arab tv shows دى فى دى العربى movies review Dvd 2 Arab movies coming soon افلام مجانية television Dvd 4 Arab movies box office IMDB Movies DVD Dvd2Arab BlueRay