If you run an online or global business from the United Kingdom, banking is rarely your problem. The real question is structure. A US LLC can give your business a foothold in the world's largest consumer market, a cleaner setup for serving US clients, and access to payment rails that many UK founders find easier to unlock. This page explains how a US LLC compares to a UK Ltd, what it means for your tax position, and how to set one up remotely with LLC Place.
Why a UK founder might choose a US LLC
- US market credibility. A US entity, a US address and a US bank account signal that you are set up to do business in America, which can reassure US customers, marketplaces and partners.
- Smoother payments. A US LLC with a US bank account often makes it more straightforward to operate Stripe, PayPal and other US facing processors for cross border sales.
- A flexible structure for global income. An LLC is a pass through by default, with light ongoing admin compared to a corporation, which suits solo founders and small online businesses serving customers worldwide.
US LLC vs UK Ltd at a glance
| Topic | US LLC (non resident owner) | UK Ltd |
|---|---|---|
| Default taxation | Pass through to the owner | Corporation tax on company profits |
| US market signal | Strong | Limited |
| Payment processors | Stripe, PayPal via US setup | Stripe, PayPal via UK setup |
| Where you usually pay tax | Where you are tax resident (the UK) | United Kingdom |
On tax, the key idea for a non resident owner is the ETBUS test, meaning engaged in a trade or business in the United States. A US LLC owned by a non resident with no US employees, no US office and no dependent agent in the US generally is not treated as engaged in US trade or business, so it generally owes no US federal income tax on its profits. As a UK tax resident, you keep declaring your worldwide income in the UK under normal UK rules. The UK and the US also have a double taxation treaty designed to prevent the same income being taxed twice. How this applies to your situation depends on your circumstances, so confirm the details with a UK accountant.
Running a US LLC alongside your UK affairs comes with a couple of compliance points worth knowing. A foreign owned single member LLC normally files an informational return on Form 5472 with the IRS each year, and you may have UK reporting obligations connected to owning an overseas entity. These are administrative matters rather than blockers, and most are routine once set up.
How it works with LLC Place
- Choose your state. Most online founders pick Wyoming or New Mexico for low fees and privacy. We help you decide based on your business.
- We file your formation. We register the LLC, provide your registered agent and US address, and prepare your documents.
- Get your EIN, US bank account and Stripe. We obtain your EIN without an SSN and guide you through opening your US bank account and activating Stripe and PayPal.
- Stay compliant. We keep you on track with annual filings such as Form 5472 and send reminders so nothing slips.
Form your US company from the UK without flying to the States. EIN without an SSN, US bank account and Stripe, handled remotely by LLC Place.