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 entrepreneurs 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 entrepreneur 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 entrepreneurs 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 information return, Form 5472 with a pro forma Form 1120, 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.
The first thing to look at from the UK is how the United States taxes an LLC. The default is pass-through treatment, meaning profits go to the members and the company pays no corporate income tax. Corporate taxation remains available as an election, so you keep the choice.
Setting up your US LLC from the UK in four steps
- Choose your state. Most online entrepreneurs 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 US commercial 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.
Frequently asked questions
Do I need to travel to the US to open the LLC?
No US travel is required. Formation and the EIN are handled remotely, and you do not need a US SSN.
Can I use the LLC for my online business?
Yes. Most entrepreneurs run their international activity through the US LLC, from freelancing and agencies to e-commerce.
How long does the whole setup take?
The application takes about 10 minutes. The formation and the EIN then follow, and we keep you updated at each step until your company is ready.
How long does it take to register a US LLC from the UK?
The state filing goes through in one to three business days in most states. The EIN follows, usually within five to twenty-one business days, and we track it for you until it lands.
