In this article
A founder outside the UK and the US often asks which to form: a UK limited company or a US LLC. The answer depends on where your customers are, how you want to be taxed and where you want to bank. This guide compares them in plain terms. It is general information and not tax advice. Speak to an adviser who knows your country's rules.
The short comparison
| UK limited company | US LLC | |
|---|---|---|
| Who can own it | People from any country | People from any country |
| Director or manager abroad | Yes, the director need not live in the UK | Yes, no US residency needed |
| Registered address | A UK registered office is required | A registered agent in the state is required |
| Public record | Directors and shareholders are public | Varies by state, some keep owners off the record |
| Tax | Corporation Tax as a UK-resident company | Taxed as a pass-through by default, with US filings for a foreign owner |
| Yearly filings | Confirmation statement, accounts, tax return | State annual report, and Form 5472 for a foreign-owned single-member LLC |
Choose a UK company if
- Your customers, suppliers or partners are mainly in the UK or Europe.
- You want a UK company for UK banking and trading.
- You are happy with the UK's public filings and Corporation Tax.
Choose a US LLC if
- Your customers or platforms are mainly in the US.
- You want US banking, payment accounts and marketplaces.
- You want the pass-through treatment an LLC gets by default.
Tax is the part to check
Where the company is taxed, and what you pay in your own country when you take money out, depends on the countries involved. Do not decide on tax alone from a comparison like this one. For the US side, read the taxes for a foreign-owned LLC.
Ready to decide?
For the UK, see UK company registration and the benefits of UK company registration. For the US, see LLC formation for non-residents. This is general information, not tax or legal advice.
Related guides and pages
- UK company registration for non-residents
- GOV.UK: set up a limited company
- Companies House
- Benefits of UK company registration for non-residents
- Documents required to register a UK company
- UK registered office address: what counts
- UK company registration cost
- LLC registration in the USA for non-residents
Frequently asked questions
Which is cheaper, a UK company or a US LLC?
It depends on the state or country, the registered address and agent, and the yearly filings. Compare the first year and the second year for each, not only the registration price.
Which is better for selling to US customers?
A US LLC is usually the closer fit, because US customers, platforms and banks are more used to it. Check what your own customers and platforms ask for.
Which is better for UK or European customers?
A UK company is a common choice, because it can register for UK tax and can be banked in the UK, subject to approval.
How are they taxed?
A UK company pays UK Corporation Tax as a UK-resident company. A foreign-owned US LLC is taxed differently and has its own US filings. Get tax advice for your country before you decide.
Can I have both?
Yes, some founders run a company in each country. It means two sets of yearly filings, so make sure it is worth it.
Written by the Jupiter Filing team
Jupiter Filing helps founders from any country form and run a US company online: formation, EIN, registered agent and yearly compliance. This guide is general information, not legal or tax advice.
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