US LLC vs UK Ltd for Cross-border Sellers
Compare US LLC and UK Limited Company for cross-border e-commerce: formation, taxation, liability, and banking.
Entity Overview
US LLC
Limited Liability Company with pass-through taxation. No federal tax at entity level for single-member LLC. Popular state: Wyoming, Delaware.
Pros
- ✓Pass-through taxation
- ✓No entity-level federal tax
- ✓Easy formation
- ✓Flexible operating agreement
Cons
- ✗State filing fees vary
- ✗EIN required for banking
- ✗Non-resident complexity
- ✗Annual compliance requirements
Best for: US-focused sellers, non-residents wanting US presence
Cost: ask the operator for the current rate; this page does not invent a range
Setup: 1-3 days
UK Ltd
Private Limited Company with corporation tax (25% main rate). Registered at Companies House. Strong reputation for international trade.
Pros
- ✓Strong international reputation
- ✓Simple formation via Companies House
- ✓UK bank account access
- ✓Gateway to EU market
Cons
- ✗Corporation tax 25%
- ✗More reporting requirements
- ✗Director obligations
- ✗Confirmation statement annual filing
Best for: UK/EU-focused sellers, building international credibility
Cost: ask the operator for the current rate; this page does not invent a range
Setup: 1-3 days
FAQ
Can a non-resident open a US LLC and UK Ltd?+
Yes to both. US LLC can be formed by non-residents in most states. UK Ltd can be formed by anyone globally via Companies House. Banking may require in-person visit or fintech solutions.