How to Set Up a US LLC from the UK (2026 Guide)
Forming a US LLC from the UK is straightforward and can be done entirely remotely, but the process has a specific order and the UK tax treatment is not as simple as people assume. Here is how to do it properly.
Why UK founders set up a US LLC
Most UK founders who form a US LLC are not moving to the US. They are selling to US customers, using US payment processors like Stripe, applying to US-based accelerators, or simply want a US entity, a US bank account, and US business credit cards to look and operate like a domestic company to American clients. A US LLC also gives you access to Mercury, Wise, and similar fintechs, plus business credit cards that are far harder to get as a purely UK entity.
None of this requires a US visa. You do not need to live in the US, visit the US, or have a Social Security Number to form an LLC, get an EIN, or open a US business bank account.
The exact steps to set up a US LLC from the UK
1. Choose a state
Your LLC is registered in one US state, not the whole country. The state you pick affects cost, paperwork, and privacy, but it does not restrict where you can actually do business or who you can sell to.
2. Form the LLC
You file Articles of Organization (name varies by state) through a registered agent in that state, since you need a physical address there to receive legal mail. This step can be done entirely online and usually takes a few business days.
3. Get an EIN
An EIN (Employer Identification Number) is your LLC's tax ID with the IRS. You need it to open a bank account, file taxes, and often to use payment processors. Because most UK founders have no US Social Security Number or ITIN, the IRS online EIN tool will not work for you. You apply using Form SS-4 by fax, mail, or by phone through the IRS's international line. This is slower than the instant online process US residents get, so plan for it to take a few weeks by fax.
4. Get an ITIN, if you need one
An ITIN (Individual Taxpayer Identification Number) is not a visa or immigration status. It exists specifically for people who need to file US tax paperwork but are not eligible for a Social Security Number, which describes most non-resident founders. You do not automatically need one just to form an LLC or get an EIN. You typically need one when you personally have to file a US tax return, for example a 1040NR, or when a bank or payment processor specifically asks for it. Apply via Form W-7, usually alongside the return that requires it, or through an IRS-authorised acceptance agent.
5. Open a US business bank account
With your EIN and formation documents, you can open an account with providers like Mercury, Wise Business, or Relay, all of which onboard non-resident founders remotely without needing you to visit a US branch. Requirements shift, so have your LLC documents, EIN confirmation letter (CP 575 or 147C), and ID ready.
6. Get US business cards
Once you have a US business bank account and some transaction history, you can typically apply for US business credit cards, which is genuinely useful for building a US financial footprint, paying for US tools and ad platforms, and separating business spend from personal.
This whole sequence, LLC, EIN, ITIN if needed, bank account, and cards, is exactly what Founders Credit handles end to end for non-US founders, so you are not stuck chasing IRS fax lines and bank compliance teams solo.
Best state for a UK founder
There is no single right answer, but three states come up constantly for foreign-owned LLCs.
| State | Ongoing state filing | Ownership privacy | Typical fit |
|---|---|---|---|
| Wyoming | Simple annual report, no state income tax | Member names generally not required on public filings | Default choice for most solo or small non-resident founders |
| Delaware | Annual franchise tax and report, more established case law | Moderate privacy, registered agent required | Founders planning to raise US venture funding or convert to a C-corp later |
| New Mexico | No recurring annual report requirement | Strong privacy, minimal public disclosure | Founders who want the lowest ongoing admin, though it's less familiar to some banks |
For most UK founders selling software, services, or ecommerce with no US investors on the horizon, Wyoming is the common, sensible default because it keeps ongoing admin low without sacrificing credibility.
The UK tax angle: the part people skip
This is the section most guides gloss over, and it matters more than the LLC paperwork itself.
In the US, a single-member LLC is a 'disregarded entity' by default. The IRS looks straight through it to you, the owner, for tax purposes. This is why many founders assume the LLC is simply transparent everywhere. It is not.
HMRC does not automatically follow the US 'check the box' treatment. Following case law (including Anson v HMRC and HMRC's subsequent guidance), HMRC generally treats a US LLC as an opaque entity, meaning it is taxed more like a company than a partnership from a UK perspective. In practice, that can mean UK tax is assessed differently in timing and character than US tax is, which creates a real risk of double taxation or mismatched foreign tax credits if you assume the two systems mirror each other.
As a UK tax resident, you remain taxable on your worldwide income regardless of where your LLC is formed. Setting up a US LLC does not remove or reduce your UK tax obligations, and it is not a way to defer UK tax indefinitely. Depending on how the LLC's profits are characterised and when they are treated as arising to you, you may also need to think about the UK's anti-avoidance rules around controlled foreign arrangements and transfer of assets abroad, particularly if you are the sole controlling member.
Before you rely on 'the LLC is pass-through so I'll just report it on my UK return the simple way,' get advice from a UK accountant who has specifically handled US LLCs. The mismatch between US disregarded-entity treatment and UK opaque-entity treatment is exactly the kind of thing that causes expensive surprises two years later, not at setup.
The setup itself, forming the LLC, getting the EIN, opening the bank account, is genuinely simple and can be done remotely without a lawyer. The tax structuring around it is the part where a quick, specific conversation with a cross-border adviser pays for itself.
Ongoing US compliance you cannot skip
Even with no US-sourced income and no US customers, a foreign-owned single-member LLC must file Form 5472 along with a pro-forma Form 1120 every year. This is an information return, it does not calculate or create a tax bill on its own, but failing to file it carries a penalty starting at $25,000, and the penalty applies even to LLCs with zero activity in the year. Most UK founders also need to keep up with their state's annual report and registered agent renewal to keep the LLC in good standing.
If your LLC is not engaged in a US trade or business and has no effectively connected income (ECI), you generally will not owe US federal income tax on foreign-source profits, but you still owe the paperwork. Treat the 5472 filing as non-negotiable, not optional admin.
Glossary
LLC: A Limited Liability Company, a US business structure that separates personal and business liability.
EIN: Employer Identification Number, the IRS tax ID for your LLC, needed for banking and filing.
ITIN: Individual Taxpayer Identification Number, issued to people who must file US tax paperwork but cannot get a Social Security Number. Not an immigration status.
Disregarded entity: The IRS default treatment of a single-member LLC, where the LLC's activity is reported on the owner's own tax filing rather than a separate corporate return.
Form 5472: An annual information return required for foreign-owned US LLCs, filed with a pro-forma Form 1120, even with no income.
Opaque entity: How HMRC generally treats a US LLC for UK tax purposes, taxing it more like a company than a transparent partnership.
ECI: Effectively Connected Income, income connected to an active US trade or business, which is what actually triggers US federal income tax for a foreign owner.
Registered agent: A person or company with a physical address in your LLC's state, required to receive official and legal mail on the LLC's behalf.
Frequently asked questions
Do I need to visit the US to set up an LLC as a UK founder?
No. Formation, getting an EIN, opening a bank account, and applying for an ITIN if needed can all be done remotely without ever entering the US.
Do I need an ITIN before I can open a US business bank account?
Usually not. Most remote-friendly banks like Mercury or Wise Business will open an account for your LLC using your EIN and formation documents. You typically only need an ITIN when you personally have to file a US tax return or a specific provider requires one.
Will I owe US tax if my LLC has no US customers?
If your LLC is not engaged in a US trade or business and has no effectively connected income, you generally will not owe US federal income tax on that foreign-source income. You still must file Form 5472 with a pro-forma Form 1120 every year regardless, since that penalty applies whether or not you owe tax.
Does forming a US LLC reduce my UK tax bill?
No. As a UK tax resident you are taxed on your worldwide income regardless of where your LLC is registered. HMRC generally treats a US LLC as an opaque entity rather than transparent, which can create timing or double taxation issues if you assume US and UK treatment match. Get advice from a UK accountant familiar with US LLCs before you rely on any assumption about how the profits will be taxed at home.
What actually happens if I forget to file Form 5472?
The IRS penalty starts at $25,000 for a late or missed Form 5472 filing, and it applies even if your LLC had no income or activity that year. Ongoing failure to file after IRS notice can trigger additional penalties, so this is not a filing you want to treat as optional.
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