US LLC vs UK Ltd: Which Should a Non-Resident Form?

Choose a US LLC if most of your customers, platforms or payment partners are in the US. Choose a UK Ltd if you sell mainly to the UK and Europe or want a company on a well-known public register. Both protect your personal assets, both can be owned from abroad, and many founders end up with one of each as they grow.

What do a US LLC and a UK Ltd have in common?

• Limited liability: the company, not you, is responsible for its debts.
• Foreign ownership: you can own either without living in the country.
• Yearly duties: both have filings every year, even with no income.

How are they set up?

A US LLC is formed under one state's law and needs a registered agent in that state. A UK Ltd is registered with Companies House and needs a registered office address in the UK. Since 18 November 2025, new directors and people with significant control must verify their identity with Companies House. At the time of writing, the online incorporation fee is £100.

How are they taxed?

A UK Ltd pays UK Corporation Tax on its profits and files a Company Tax Return (CT600) with HMRC each year. The main rate is 25%, with a 19% small profits rate for profits of £50,000 or less.

A single-member US LLC is, by default, ignored for US income tax purposes, and its profit is treated as the owner's. Whether a non-resident owner owes US tax depends on whether the business has income connected with the US. Either way, a foreign-owned single-member LLC files Form 5472 with a pro forma Form 1120 every year. Because tax depends on your own situation and home country, get advice before you choose.

What do they file each year?

• UK Ltd: annual accounts and a confirmation statement with Companies House, and a CT600 with HMRC.
• US LLC: Form 5472 with a pro forma 1120 to the IRS, and an annual report or fee in many states.

Which is more private?

The UK register is public: directors' names, a service address and people with significant control can be seen by anyone, along with the company's accounts. In the US, what is public depends on the state, and some states do not list the owners of an LLC.

Which is better for payments and selling online?

Both work with major payment tools. A US LLC with an EIN and a US bank account fits US marketplaces, platforms and customers who expect a US business. A UK Ltd fits UK and European customers, and UK banks and payment providers.

Can I have both?

Yes. A common path is to start with the company that matches your first market, then add the second when sales grow in the other region. Each has its own yearly filings, so a compliance calendar helps keep both on track.

How we help

We form US LLCs and UK Ltds for founders anywhere, usually in 2 to 3 weeks from the day we have your documents, with government fees shown separately in your quote. For a UK Ltd, we can provide the UK registered office address.

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