You don’t need to live in the US to run a US-based business. In fact, starting a limited liability company (LLC) from the UK is surprisingly accessible. But with divergent tax rules, state regulations, and other requirements, it’s easy to miss an important detail. Below, you’ll find a step-by-step guide to confidently start an LLC from the UK.

What’s in this article?

• Why would a UK business owner want to start an LLC in the US?
  
• What are the best US states for forming an LLC as a non-resident?
  
• How do you register an LLC in the US from the UK?
  

Why would a UK business owner want to start an LLC in the US?

Setting up a US LLC can be a smart move for UK entrepreneurs who want to expand globally. Here are some of the reasons why.
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Access to the US market

The US is one of the largest consumer markets in the world, and US consumer spending reached over $16 trillion in the fourth quarter of 2024. Forming an LLC allows you to more easily sell in the American market, and having a local presence appeals to US customers. Operating through a US entity means you can price and get paid in US dollars (USD), avoid constant currency conversions, and easily pay sales taxes in USD.
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Stronger credibility with US investors and partners

Having a US-based entity makes your business look more established to American investors, customers, and suppliers. It also shows you’re serious about operating in the US. If you’re planning to raise capital or build partnerships, a US LLC is a boon.
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Limited personal liability

As the name suggests, an LLC protects your personal assets, just like a UK limited company. If the business encounters legal or financial trouble, your savings, home, and other personal assets are protected. You can run a business without an LLC (e.g., as a sole trader), but you personally take on all the risk. An LLC is a safer structure for any operation beyond a hobby.

Potential tax benefits

US LLCs are treated as pass-through entities unless they elect to be taxed as corporations. That means you can report income on your personal US income tax return rather than file for corporate income tax. Before they commit to this, however, non-residents should always seek professional tax advice for their specific situations.

What are the best US states for forming an LLC as a non-resident?

If you’re based in the UK and setting up a US LLC, one of your first decisions is choosing which state to form it in. You can technically form an LLC in any state as a non-resident: the only requirement is to have a registered agent (or registered agent service) with a physical address in the state. This person will receive legal documents and important government notices on your behalf.

The state you choose will determine aspects of how your company is taxed, its maintenance costs, and how it’s treated legally. Here’s a closer look at common states where non-US founders establish LLCs.

Delaware

Delaware is widely used for LLC formation by both domestic and foreign entrepreneurs. Here are some factors that make Delaware an attractive choice:

• It’s known for its stable, business-friendly legal system, including a specialised Court of Chancery that handles corporate matters without juries. This makes outcomes more predictable in case of legal disputes.

• The state’s corporate law is well-developed. Venture capital firms and institutional investors are broadly comfortable backing Delaware entities, which could be important if you’re planning to raise US funding later.

• It doesn’t tax out-of-state income for LLCs. So if you’re running your LLC from the UK and don’t have a physical operation in Delaware, you won’t owe Delaware income tax. Instead, you pay a fixed annual franchise tax of $300 to maintain the LLC.

• Delaware doesn’t require LLCs to publicly disclose the identities of their members or managers.

It’s worth noting that Delaware’s ongoing compliance obligations are a bit more involved than those of some other states and that the legal system is designed more for scalability and professionalisation than for simplicity.

Wyoming

Wyoming provides a low-cost alternative to Delaware, particularly for smaller companies or solo founders who want a simpler entry point. Business owners choose Wyoming for the following reasons:

• It has a $60 annual report fee and no franchise tax.

• There’s no state corporate income tax or personal income tax.

• Wyoming doesn’t require public disclosure of LLC members or managers, which appeals to founders who value discretion.

• It has strong asset protection laws, and the state offers protections for LLC owners in disputes that involve creditors.

Wyoming doesn’t carry the investor prestige of Delaware, and its legal infrastructure isn’t as accommodating to complex, high-growth companies as Delaware’s is. But it does offer an efficient setup for UK founders who run online-first businesses without immediate plans to raise funds in the US.

Nevada

Nevada is often grouped with Wyoming as another strong choice because it shares several advantages:

• There’s no state corporate income tax or personal income tax.

• It doesn’t require public disclosure of LLC owners, although directors and managers must be publicly listed.

• It has a business-friendly legal framework and asset protection laws.

One difference between Nevada and Wyoming is their fees. Nevada’s ongoing business fees are higher than Wyoming’s, with a $200 annual business licence renewal fee and a $150 annual list fee. Nevada might make sense if you plan to operate in or near the western US or if you prioritise privacy but want to avoid Delaware’s structure.

Florida, Texas, and other common options

Several other states also work well if you want to form an LLC while based in the UK. Here’s how they compare:

• Florida has no state income tax for individuals. Since LLC profits “pass through” to the owner, this can be a tax-efficient setup if you have personal US tax obligations. Florida also has relatively low ongoing costs – it’s $138.75 to file an annual report.

• Texas has no personal income tax, but it does levy a business franchise tax if your annual revenue exceeds $2.47 million. Texas is a strong option if you’re planning to scale into the southern US.

• South Carolina is notable for its low fees and lack of an annual reporting requirement.

• Colorado appeals to start-ups for its active tech scene. While it collects both corporate and personal income tax, the state charges minimal ongoing fees for LLCs.

These options might make sense if you have a clear reason to anchor your business in a specific region, such as your customer base, partners, supply chain logistics, or need for a physical presence. If you form your LLC in one state but start operating in another (e.g., registering in Delaware but opening an office in California), you’ll need to register as a foreign LLC in the second state. As a result, your compliance burden doubles, and you’re subject to two states’ filing fees, reports, and rules.

If you’re forming an LLC with no physical US footprint – which is common for e-commerce, software-as-a-service (SaaS), and service-based businesses – you can often avoid this scenario by staying in one business-friendly state, such as Delaware or Wyoming.

How do you register an LLC in the US from the UK?

As discussed previously, your first step is to pick a location. Your choice impacts tax exposure, filing fees, and compliance requirements. If you’ll have a physical base in a state (e.g., a warehouse or office in California or Texas), it can be wise to register there to avoid the complexity of working in multiple states. Once you’ve chosen the state where you want to form your LLC, you’ll follow the state’s specific process to register. Generally speaking, here are the steps you can expect to follow.

Choose a business name

Your LLC’s name must meet the following requirements:

• It’s unique within the state. Check the secretary of state’s business name database to confirm availability.

• It includes a designator such as “LLC” and doesn’t use restricted terms such as “bank” and “trust.”

Your LLC name should also ideally be available as a “.com” domain. Choosing a name is a simple but important step. Pick a name that’s legally unambiguous and commercially useful.

Appoint a registered agent

LLCs must list a registered agent with a physical address in the state. This person or company receives official documents on your behalf. You can’t serve as your own registered agent unless you live in the US, and non-residents typically use a registered agent service.

This step is mandatory. Your LLC can’t be formed otherwise.

File articles of organisation

This is the official act of creating your LLC. You’ll file a formation document (called “articles of organisation” or “certificate of formation,” depending on the state) with the secretary of state. With the filing, you’ll need to provide:

• Your LLC’s name

• The registered agent’s name and address

• A business address

• Member or manager names (depending on state requirements)

Filing can usually be done online.

Draft your operating agreement

Some states require LLCs to have written operating agreements, and having one can be helpful even if it’s not required in your state. It defines:

• Ownership structure

• Member responsibilities

• Profit distribution rules

• Procedures for disputes or exit

If you’re the sole owner, this can be a simple document that states you’re in control. If there are multiple members or outside investors, take the time to get this agreement right for legal clarity and liability protection.

Obtain your Employer Identification Number (EIN)

You need to obtain an EIN from the IRS before you can:

• Open a US bank account

• Hire employees

• File tax returns

• Register for sales or payroll tax

It’s free to apply and relatively fast to get your EIN. Many formation services, including Stripe Atlas, can help with this step.

Open a US business bank account

Once your LLC is formed and your EIN is issued, you can open a business bank account in the US. To do this, you’ll need:

• Your LLC formation certificate

• Your EIN

• Proof of identity and possibly a US address

Some traditional banks require in-person visits, but many fintech platforms offer remote onboarding for foreign founders.

Handle state-level business needs

Depending on your business type, you might also need to:

• Register for state sales tax (if you sell taxable products or services)

• Apply for local business licences or permits

• Register for payroll taxes if you hire US-based employees

If you’re searching for the cheapest way to start an LLC, doing everything yourself can keep costs low. But you’ll still be subject to state filing and reporting fees – forming an LLC isn’t free.