Open a US LLC from the UK

Why founders in the UK form a US LLC

UK founders form a US LLC to sell into the US market with a US entity, US banking and US payment processing. Before you do, check whether a UK company or a US company is the right base, since the tax treatment of a US LLC in the UK can be different from the US.

UK-specific points to check

• HMRC treatment. The US treats a single-owner LLC as ignored for income tax. HMRC may treat it differently, so speak to a UK accountant before you form one.
• US-UK tax treaty. A treaty exists between the two countries. Its effect depends on your situation and how the LLC is taxed in each country.
• UK company vs US LLC. If most of your customers are in the UK, a UK limited company may be simpler. See our page on company formation in the UK.

How to open a US LLC from the UK

1. Choose a state. Compare the yearly cost, not only the first-year fee. See LLC filing fees by state.
2. Pick a company name that is available in that state and ends in LLC.
3. Get a registered agent. Every LLC needs one with a US address in its state. The first year is included in our packages.
4. We file the articles of organization with the state for you.
5. Get an EIN. You do not need a Social Security Number. See our EIN service.
6. Open a bank account and keep business money separate.

The yearly IRS form owners outside the US must not miss

If you are the only owner of the LLC and you live outside the US, the LLC files Form 5472 with a pro forma Form 1120 every year, even if it earned nothing. Missing it carries a $25,000 penalty. We prepare it as part of our US LLC tax filing service.

This page is general information, not tax or legal advice.