Forming a company in the United States from the United Kingdom is very achievable — but the US filing is only one side of the structure. This guide covers both: the US decisions, and what specifically changes because you are resident in the United Kingdom.
Can a founder in the United Kingdom form a company in the United States?
Short answer: yes — a UK resident can own 100% of a US company with no exchange-control hurdles. The care needed is tax: how the US entity's profits interact with UK Corporation Tax or your Self Assessment, and the US LLC “pass-through” trap.
At a glance
| At a glance | |
|---|---|
| Main structures | LLC or C corporation |
| Foreign ownership | 100% permitted — no US residency or visa needed |
| Local director | Not required |
| Registered agent | Required in the state of formation |
| Tax ID | EIN from the IRS |
| Corporate tax | 21% federal (C corp) + state tax where applicable |
| Key foreign-owner filing | Form 5472 + pro forma 1120 for foreign-owned LLCs |
| BOI reporting | Domestic US companies exempt (2026 FinCEN rule) |
Why founders from the United Kingdom choose US
UK founders form in the US to reach US customers, price in dollars, access US payment processors and, for startups, to raise from US investors who expect a Delaware C corporation.
Which company structure should you choose?
- LLC — flexible and light to run; ideal for consulting, services, SaaS invoicing and small trading. A single-member LLC owned by a non-resident is a “disregarded entity” for US tax by default.
- C corporation — the standard choice if you will raise from US or international investors, who expect a Delaware C corp with stock, a board and a cap table.
Foreign ownership, director and address requirements
No US citizenship, residency or visa is required to own a US company, and you do not need a local director. You do need a registered agent with a physical address in your state of formation and an EIN (federal tax ID) to open a bank account and file returns. Delaware and Wyoming are popular, but forming in the state where you actually operate is simpler if you have US staff or premises.
What changes because you are resident in the United Kingdom
Being resident in the United Kingdom adds a home-country layer on top of the US rules: how the capital leaves the United Kingdom, and what you must report there once you own the foreign company. It doesn't stop you — it just needs planning alongside the US steps below.
the United Kingdom’s outbound-investment and reporting rules
The UK has no exchange controls, so a UK resident can invest abroad freely. The key issues are tax: UK residents are generally taxed on worldwide income, and anti-avoidance rules apply to overseas structures.
- Report foreign income and gains in your Self Assessment return.
- Controlled Foreign Company rules can attribute a foreign company’s profits to a UK corporate parent.
- The transfer of assets abroad rules can apply to individuals who set up offshore structures.
Documents you will need
- Passport and proof of address for each owner and director
- Proposed company name and chosen state of formation
- Registered-agent details and a US business address
- Ownership split, and for a C corporation the share structure
- Source-of-funds evidence for the initial capital (for banking)
Step-by-step formation process
- Choose entity and state. Decide LLC vs C corporation and the state of formation.
- Appoint a registered agent and file. File the Articles of Organization/Incorporation with the state.
- Get the EIN. Apply to the IRS for the federal tax ID (needed to bank and file).
- Governance docs. Put the operating agreement or bylaws and ownership records in place.
- Bank and set up filings. Open banking (separate process) and set your accounting/filing calendar.
How to send the initial capital
Fund the company freely by transfer, documenting it as share capital or a loan. Keep records so the flows are clear for HMRC.
Opening a bank account
US banking is usually the slowest step and approval is never guaranteed. Expect the bank — or a fintech such as Mercury, Brex or Wise Business — to verify the beneficial owner, ask what the business does, and want a real website, customer or contract evidence and a plausible US rationale. Have your EIN and formation documents ready. Some fintechs onboard non-residents remotely; traditional banks may effectively expect a US visit.
Taxation in US
A C corporation pays 21% federal corporate tax plus any state corporate tax, and US withholding can apply to dividends paid to foreign shareholders. A foreign-owned single-member LLC is generally not itself taxed in the US on non-US-source income if it has no US trade or business, but it still has reporting duties. Sales tax is a separate, state-by-state matter driven by economic nexus.
Tax and reporting back in the United Kingdom
Separately from US tax, the United Kingdom taxes you as a resident and expects the home-country reporting set out above (see “the United Kingdom’s outbound-investment and reporting rules”). The practical point is that owning the foreign company is not tax-neutral at home: build both sides into your annual filing calendar rather than treating the US return as the whole picture.
Cross-border tax considerations
A US LLC treated as pass-through in the US is opaque to the UK, so a UK company or individual owner can face a timing or credit mismatch. The US–UK tax treaty and foreign tax credits relieve most double tax, and CFC rules can attribute a US company's profits to a UK parent — take combined advice before choosing LLC vs C corp.
Annual compliance in US
- Form 5472 + pro forma 1120 — a foreign-owned single-member LLC must file this yearly; the penalty for missing it is steep.
- Federal/state income tax returns (Form 1120 for corporations) plus any state franchise tax.
- State annual report / registered-agent renewal to stay in good standing.
- BOI: domestic US companies are exempt under the 2026 FinCEN rule; it applies only to foreign-formed entities registered in a US state.
Ongoing obligations in the United Kingdom
Keep your the United Kingdom position current: refresh any foreign-asset or foreign-affiliate disclosures each year, report further investment or repatriation, and keep records tying your shareholding back to the funds that paid for it.
Cost
Look at four separate costs, not one headline number:
- Government cost. State filing fees run from roughly USD 50 to USD 500 depending on the state, plus an annual registered-agent fee (about USD 100–300) and any state franchise tax or annual-report fee.
- Required third-party cost. Any mandatory local role — registered agent/office, company secretary, resident/nominee director or free-zone desk, depending on the country.
- StartEase professional fee. Quoted separately and clearly, so you see exactly what you pay us versus the government.
- Annual recurring cost. Renewals, accounting, tax filings and any local-role fees — ask “what will this company cost me to keep alive after year one?”
Timeline
Treat each regulator and the bank as a separate track — never bundle them into one “ready in X days” promise:
- Company incorporation: Often 1–5 business days; some states offer same-day expedited filing
- EIN (tax ID): Days to a few weeks for a non-resident without an SSN
- Bank account: Reviewed separately — not guaranteed (see below)
Visa and immigration
Forming a US company does not grant the owner or director a visa, work authorisation, US residency or a green card. Ownership and immigration are separate; living or working in the US needs the appropriate visa (for example E-2 or L-1) in its own right.
Common mistakes to avoid
- On the the United Kingdom side: overlooking the CFC rules or failing to report foreign income in Self Assessment.
- On the US side: missing the annual Form 5472 for a foreign-owned single-member LLC (the penalty is severe).
- Assuming ownership grants a visa or residency — it does not.
- Promising clients a live bank account on day one — onboarding is separate and can be declined.
- Choosing a heavier structure for prestige when a simpler one would cost far less to run.
Who this suits — and who it does not
It suits you if you have a genuine US reason — customers, currency, market access or investors there. It may not suit you if your customers and operations are entirely in the United Kingdom with no real US nexus, in which case the extra filings and cross-border reporting add cost without a clear benefit.
How StartEase can help
We handle the US formation end to end — structure and registration, the local roles you need, tax registration and your ongoing filings — and we coordinate with your the United Kingdom adviser so the funding route and home reporting line up. Talk to StartEase about your US company.
Sources reviewed
Last reviewed: June 2026.
Important: This is general educational information, not legal, tax, accounting or immigration advice. Rules, rates, fees and thresholds change and depend on your circumstances — confirm the current position with a qualified professional before you act.
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