Start a US LLC From the UK: Steps and HMRC Caveats

A UK resident can start a US LLC from the UK in a matter of days, remotely, with no SSN and no US visit. The formation is the easy part. The hard part is that HMRC generally treats a US LLC as an opaque company while the IRS may treat the same entity as transparent, and that mismatch can produce a worse tax outcome than doing nothing — so settle it with an accountant before you file, not after.

Bottom line

• Formation plus EIN is straightforward from the UK. Year one typically runs roughly $150–$600 depending on state and provider.
• HMRC’s long-standing practice is to treat US LLCs as companies rather than transparent entities. The Supreme Court’s decision in Anson did not change that practice in general.
• The hybrid mismatch can mean US tax paid on profits and UK tax on distributions with limited relief. This is the single question to put to a UK accountant first.

Why UK founders form US LLCs

US payment rails and Stripe. A US entity with an EIN and a US business bank account unlocks US-domestic card processing, US marketplaces and US B2B procurement flows that are clumsier from a UK company.

American buyer preference. In B2B sales to US mid-market companies, a US counterparty shortens procurement and legal review. For agencies and SaaS businesses selling into the US, that is a commercial reason, not a tax one.

USD-native operations. If both your revenue and a meaningful share of your costs are in dollars, holding and spending dollars in one entity removes conversion drag.

Speed. No share capital, no Companies House filings, no directors’ duties regime. An LLC is a form, a fee and a registered agent.

Notice that none of those four reasons is “pay less tax.” For a UK resident, that is usually the wrong reason, for the reasons below.

The HMRC caveat, in plain terms

Here is the mechanic that catches people.

A single-member US LLC is, by default, disregarded for US federal income tax purposes — the IRS looks through it to the owner. HMRC, by contrast, has for many years treated LLCs formed under US state law as companies, meaning opaque: a separate entity whose profits belong to it, and whose distributions to you are treated as distributions from a company.

The case that put this in the spotlight was Anson v HMRC [2015] UKSC 44, where the Supreme Court held on the particular facts that the member was entitled to double tax relief because he was entitled to the LLC’s profits as they arose. In Revenue & Customs Brief 15 (2015), HMRC responded that it would largely continue its existing practice of treating US LLCs as opaque, considered the decision specific to the facts of that case, and said claims for double tax relief relying on Anson would be looked at case by case.

Two practical consequences follow.

Timing and credit mismatch. If the US treats the profit as yours as it arises and the UK treats it as the company’s until distributed, the years in which each country taxes the same money may not line up. Foreign tax credit relief depends on matching the right tax to the right income in the right year, and a mismatch can leave part of the US tax uncredited.

Treaty access. Hybrid entities sit awkwardly under the UK–US double taxation convention. Do not assume treaty benefits flow automatically to you as a member.

There is a third issue that has nothing to do with Anson and matters just as much: UK corporate residence. A company can be UK resident by virtue of its central management and control being exercised in the UK, not only by being incorporated there. If HMRC treats your LLC as a company and you make every strategic decision from a desk in Manchester, the question of whether that company is UK tax resident — and within the charge to UK corporation tax — is a live one. Ask about it explicitly.

None of the above is advice, and none of it is a reason to panic. It is a reason to spend an hour with an accountant who has seen US LLCs before, and to ask directly: given my facts, is an LLC the right vehicle, or would a US C-Corp or a UK limited company produce a cleaner result?

The formation steps, in order

1. Pick a state. Wyoming and New Mexico are the usual low-cost, high-privacy choices for non-residents. New Mexico requires no LLC annual report at all. Wyoming charges an annual report license tax with a $60 minimum for LLCs holding $300,000 or less in in-state assets, due in your anniversary month. Delaware has a flat $300 LLC franchise tax due June 1 and is mainly worth the premium if US venture capital is realistically in your plan — see wyoming-vs-delaware-llc.

2. Appoint a registered agent. Required in every state: a physical in-state address that accepts legal service. Northwest Registered Agent is the pick when privacy matters, because it is notably disciplined about keeping client addresses out of public filings. Background in what is a registered agent and the head-to-head in northwest-vs-zenbusiness.

3. File the Articles of Organization. Online in most states, with the state fee. Fees vary; check the current schedule.

4. Get the EIN. No SSN needed. File Form SS-4 with “foreign” on line 7b if you have no SSN or ITIN. International applicants can apply by phone on 267-941-1099 or fax to 304-707-9471 — the IRS says fax generally returns an EIN in about four business days, mail in roughly four weeks. Full detail in how to get an EIN without an SSN.

5. Sign an operating agreement. Yes, even as the only member. It is the document that evidences ownership and what banks ask for.

6. Open the US business account. Remote-friendly platforms onboard UK passport holders with the EIN, formation documents and operating agreement. Approval is never guaranteed.

7. Put the compliance dates in the calendar. State annual report or franchise tax, registered agent renewal, and Form 5472 with a pro forma Form 1120 for a foreign-owned single-member LLC. That filing carries a $25,000 penalty for failure to file and applies even in a year with no income. It cannot be filed electronically.

doola covers steps 2 through 6 in one subscription, including a US address and bookkeeping, and is built for founders outside the US. If all you want is the agent and a privacy-first filing, Northwest Registered Agent does that directly.

Banking and payments from the UK

UK founders have an easier banking path than most. A UK passport is rarely the obstacle; documentation quality is. Bring the EIN confirmation, stamped formation documents, a signed operating agreement, a US business street address that is not a registered agent mailbox, and a one-paragraph description of who pays you and for what.

Fintech platforms handle this remotely. Traditional US branch banks generally will not without an in-person visit. Details and the fallback options are in us-business-bank-account-for-non-residents.

For payments, a US LLC with an EIN and a US bank account can generally run Stripe as a US business. Stripe also offers its own incorporation product if you want the company and the payment stack from one supplier — a reasonable alternative, just narrower than a full formation service. On the UK side, Wise Business and Revolut Business remain useful for holding GBP and EUR alongside the dollar account.

Who should form a US LLC from the UK — and who should not

Do it if you have real US commercial reasons: US customers, US payment rails, US buyer trust, or dollar-denominated operations — and you have taken UK advice on the hybrid treatment and budgeted for both a UK accountant and a US preparer.

Do not do it if the entire appeal is a lower tax bill. For a UK resident with UK-performed work and UK or EU customers, a UK limited company is usually simpler, cheaper to run, and free of the opacity mismatch. Adding a US entity to that fact pattern adds cost and risk without adding revenue.

Consider a US C-Corp instead if you are raising from US investors, or if your accountant tells you the corporate form avoids the mismatch problems in your situation. The right answer depends on facts an article cannot see.

FAQ

Does Anson mean my LLC is transparent for UK tax?

Not as a general rule. HMRC’s published response was that it would continue treating US LLCs as opaque, that the decision was specific to the facts of that case, and that relief claims relying on it would be considered individually. Treat transparency as something to be argued for with advice, not assumed.

Could my US LLC be taxed in the UK?

Possibly, and there are two routes: HMRC treating it as a company whose distributions are taxable on you, and the company itself being UK resident because its central management and control sit in the UK. Both are questions for your accountant.

Do I need to visit the United States?

No. Formation, EIN and remote-friendly business banking are all doable from the UK. Only traditional branch banking typically requires a visit.

Will I owe US tax on the LLC’s profits?

Often not, if you are a non-resident performing all work outside the US with no US office or dependent agent. But the US filing obligation exists regardless — Form 5472 is required even in a zero-tax year.

This is general information, not legal or tax advice. Confirm your position with a UK accountant and a US CPA or attorney before you act on any of it.

If the commercial case holds up, doola is the most complete way to get the entity, EIN and US address handled from the UK, and Northwest Registered Agent is the choice if privacy is what you are actually buying. Book the UK accountant conversation in the same week you file — the mismatch question is much cheaper to answer before the first tax year closes.