US LLC for UK Residents: Setup, Tax & Compliance Guide (2026)

Yes, you can own a US LLC while living in the United Kingdom. You don’t need a US visa, a Social Security number or a US address of your own. What you do need is a clear picture of how two tax systems treat the same company, because that is where most UK founders get caught out.

This guide explains how a US LLC for UK residents works in 2026: who it suits, what it costs, how HMRC and the IRS see it, and the filings you can’t skip. For the practical formation step, a service like ZenBusiness handles the state filing, registered agent and basic paperwork. Its entry plan starts at $0 plus the state fee, and paid tiers add extras. Check current pricing and non-US eligibility on their site before you order.

Can a UK Resident Own a US LLC?

Yes. No US state requires an LLC member to be a citizen or resident. Our broader guide on whether a foreigner can own an LLC in the US covers the general rules. For a UK resident, the legal side is straightforward. The complexity is tax and compliance.

An LLC is a US legal structure. The IRS treats it differently depending on its ownership:

Single-member LLC: By default, the IRS treats it as a “disregarded entity”. For a non-US owner with no US-connected income, there is usually no US federal income tax to pay.
Multi-member LLC: By default, it is taxed as a partnership and files Form 1065. Foreign partners can face withholding obligations.
Elected corporation: The LLC can elect to be taxed as a corporation, which changes the filing picture entirely.

If you want the fundamentals first, see our explainer on what an LLC is.

Who Actually Benefits From a US LLC for UK Residents?

In my experience, UK founders usually want a US LLC for one of these reasons:

Selling to US customers. A US entity and US bank account can make payment processing, invoicing and credibility easier.
Using US platforms. Stripe, Amazon and other platforms often have simpler onboarding for US entities.
Holding digital assets or IP. Some founders keep a software product or online brand in a US entity.
Preparing for US investors. Investors usually prefer a Delaware C-corp, so an LLC is more often a starting point than an endpoint.

Where it often doesn’t help is cost savings. I’ve seen too many UK freelancers form a US LLC because they read it would “avoid tax”. It generally doesn’t. If you live and work in the UK, HMRC can still tax the profits. A UK limited company is often simpler and cheaper for UK-based work.

How HMRC and the IRS Treat Your LLC

This is the part that matters most. The two countries can classify the same LLC differently.

The US side

A single-member LLC owned by a UK resident is generally a disregarded entity for US purposes. If the LLC has no US-source “effectively connected” income, such as income from a US office or US-based staff, there is typically no US federal income tax. Services performed from the UK for customers anywhere are normally treated as foreign-source. State taxes and other situations can differ, so confirm your facts with an adviser.

The UK side

HMRC doesn’t automatically treat an LLC as transparent. It assesses each LLC individually, and many are treated as companies (opaque) for UK purposes. The Supreme Court case Anson v HMRC (2015) concluded that a particular Delaware LLC’s members were taxable on its profits as they arose. Later HMRC guidance stresses that the answer depends on the specific LLC’s rights and terms. For a UK resident, this means:

If HMRC treats the LLC as transparent, its profits are taxed on you personally, as sole trader-style income or partnership income.
If HMRC treats it as opaque, it may be a company in UK terms. If the LLC is managed and controlled from the UK, it can be UK-resident for corporation tax, and extracting money may trigger dividend tax.

For reference, the GOV.UK corporation tax rates page lists the current rates. These include a 19% small profits rate and a 25% main rate, with marginal relief in between.

Practical point: UK resident LLC tax is not a DIY topic. Because UK treatment depends on the LLC’s terms and where it is managed, a short consultation with a UK accountant who understands US entities is money well spent. It costs far less than an HMRC enquiry.

The UK-US tax treaty

The UK-US tax treaty can reduce double taxation, but treaty relief for hybrid entities like LLCs is technical. Don’t assume it applies automatically.

Mandatory US Filings for UK-Owned LLCs

Even when you owe no US tax, you have filing duties.

Form 5472 and the pro forma 1120

A foreign-owned single-member LLC must file Form 5472 with a pro forma Form 1120 each year. It reports “reportable transactions” between the LLC and you, such as capital contributions and owner draws. The penalty for failing to file is $25,000 per form, per year, under IRS rules. See the IRS Form 5472 page for the current instructions. Our walkthrough on Form 5472 for foreign-owned single-member LLCs covers the process in more detail.

This is the single most common compliance failure I see. Many UK owners assume “no US tax” means “no US filing”. It doesn’t. Formation services generally don’t file Form 5472 for you, so budget for a tax preparer.

State annual reports and fees

Most states require an annual report or fee. Delaware charges a $300 annual tax, and Wyoming has a modest annual report fee. New Mexico has no annual report. Our guide to the best state to form an LLC compares the options.

Beneficial ownership (BOI) reporting

As of the March 2025 FinCEN interim final rule, US-formed companies and US persons are exempt from beneficial ownership reporting. This rule has been in flux, so check the FinCEN BOI page for the current position before you rely on it.

Step-by-Step: How to Open a US LLC From the UK

Choose a state. Wyoming, Delaware and New Mexico are popular with non-residents. Pick based on cost and your plans, not hype.
Pick a name and check availability with the state’s business registry.
Appoint a registered agent. Every LLC needs a US address for legal notices. Our guide to what a registered agent is explains the role.
File the Articles of Organization with the state, usually online.
Draft an operating agreement. It matters even for single-member LLCs and can influence how HMRC views the entity. See our LLC operating agreement guide.
Get an EIN. Without a US SSN, you apply using Form SS-4 by fax, mail or phone. Our guide to getting an EIN without an SSN walks through it.
Open a bank account. Some US banks and fintechs onboard non-residents remotely. See opening a US bank account for a foreign-owned LLC.
Set up bookkeeping and keep personal and business money separate.

The EIN is often the slowest step. Plan for several weeks if the IRS is processing by fax or mail.

What Does a US LLC Cost a UK Resident?

Here is a realistic first-year budget, in USD:

Item	Typical cost
State filing fee (Wyoming)	About $100
State filing fee (Delaware)	About $110
State filing fee (New Mexico)	$50
Registered agent (annual)	$100–$250
Delaware annual tax	$300
Form 5472 preparation	Varies by preparer
UK accountant advice	Varies by adviser

State fees change, so confirm on the state website. Registered agent pricing varies by provider. For a fuller breakdown, see how much an LLC costs.

Remember to convert to pounds: a weak pound makes US costs feel higher than the headline number.

Which LLC Formation Service Works Best for UK Residents?

Not every service is equally set up for non-US owners. The table lists providers in our standard order, with what each is best known for.

Service	Best known for	Worth knowing for UK owners
ZenBusiness	Best overall for beginners	Straightforward ordering and tiered plans; confirm non-US eligibility
LegalZoom	Established brand, broader legal services	Pricier registered agent than some rivals
Tailor Brands	Branding bundled with formation	Better if you also want logo and brand tools
Inc Authority	Low-cost formation	Check what’s included beyond the basic filing
Northwest Registered Agent	Best for privacy	Strong if you want your address kept off public records
Bizee	Low-cost entry options	Good for budget-conscious owners
LLC Attorney	Attorney-backed formation	Useful if you want legal oversight

My pick: For most UK founders forming their first LLC, I’d start with ZenBusiness. It’s easy to follow, and the paid tiers add useful extras such as a registered agent and compliance reminders. LegalZoom is a reasonable second choice if you value its brand and wider legal services. If keeping your name and address off public filings is your priority, Northwest Registered Agent is the privacy-focused option. Our anonymous LLC guide explains how that works.

For a deeper comparison, see our best LLC services hub, the ZenBusiness review and ZenBusiness vs LegalZoom.

Common Mistakes UK Owners Make

Assuming zero tax everywhere. The LLC may owe nothing in the US but you may owe tax in the UK.
Skipping Form 5472. The penalty is steep and easy to avoid.
Mixing personal and business funds. It weakens liability protection and creates reporting problems.
Managing the LLC entirely from the UK without advice. Central management and control can affect UK company residence.
Forgetting UK self-assessment. If HMRC treats you as taxable on the profits, they belong on your return.
Choosing a state for the wrong reasons. A cheap state isn’t cheap if you add an expensive annual fee later.

Is a US LLC Right for You?

A US LLC makes sense if you have genuine US customers, need a US entity for platforms or payments, and are willing to run proper compliance. If you only serve UK customers, a UK limited company is usually simpler. If you’re planning to raise US venture funding, speak to a lawyer about a Delaware C-corp from the start.

Frequently Asked Questions

Can a UK resident open a US LLC?

Yes. US states don’t require LLC members to be US citizens or residents. You’ll need a registered agent, an EIN and a US bank account, but not a US visa.

Do I pay tax in the UK on a US LLC?

Often yes. HMRC assesses LLCs case by case, and your profits may be taxable in the UK either personally or through the LLC if it’s treated as a company. A UK accountant can confirm your position.

Does a US LLC avoid UK tax?

No. Being UK resident generally means you’re taxed on worldwide income. A US LLC does not by itself remove UK tax obligations.

No. You can apply for an EIN with Form SS-4 using your UK passport and address, though the process is slower than for US applicants.

What happens if I don’t file Form 5472?

The IRS can charge a $25,000 penalty per form, per year, and further penalties if the failure continues after notice.

How much does a US LLC cost for a UK resident?

Expect roughly $150–$500 in first-year formation and registered agent costs, plus annual state fees and tax preparation. Costs vary by state and provider.

Can I open a US bank account from the UK?

Sometimes. Some fintechs and banks support remote onboarding for non-residents, while traditional banks often require an in-person visit. Requirements change, so check each provider.

Do I need to file a BOI report in 2026?

Under the March 2025 FinCEN rule, US-formed companies are currently exempt. Rules have shifted repeatedly, so verify on FinCEN’s website before relying on this.

The Bottom Line

A US LLC for UK residents can be a smart tool for serving US customers, but it isn’t a tax shortcut. Get the formation right, file Form 5472 every year, and get UK tax advice before you start trading. When you’re ready, compare options in our best LLC services guide or start with ZenBusiness.

The author name used in this article may be a pen name or pseudonym and is used for illustrative and editorial purposes only. This article is for informational purposes only and does not constitute investment, tax, or legal advice. Tax rules in the US and UK change frequently and depend on individual circumstances. Consult qualified professionals before making financial decisions.