Why UK Residents Form US LLCs
British entrepreneurs form US LLCs for these practical reasons:
- Access Amazon.com and US e-commerce without tax withholding
- Accept USD at better exchange rates than UK payment processors offer
- Raise funding from US investors (many require Delaware C-Corp or LLC)
- Separate US operations from UK limited company
- Work with US clients who prefer paying US entities
What You Need to Apply
As a UK resident, you need:
- Valid UK passport (driving licence not accepted by IRS)
- A formed US LLC (Delaware, Wyoming, and New Mexico are common choices)
- US registered agent address
- Your UK residential address
- Email for communications
Banking: Options That Work for UK Residents
UK residents have several good options:
- Mercury: Most popular choice, 100% online, no US visit needed
- Relay: Alternative to Mercury with similar features
- Wise Business: Provides US account details, easiest to set up, familiar to UK users
- Revolut Business: Can provide US account details if you have UK Revolut
- Traditional US banks: Generally require in-person visit or US address
Tax Implications: US-UK Treaty
The US-UK tax treaty is comprehensive. Here's what matters:
- Single-member LLC is tax-transparent β you're taxed as self-employed in UK
- File US Form 5472 annually (foreign-owned LLC disclosure) by April 15
- Report LLC income to HMRC as self-employment or trading income
- You may claim foreign tax credits if you pay US taxes
- VAT: US LLC sales to UK customers may still trigger UK VAT obligations
- HMRC may require you to notify them of your foreign business interest
Brexit Considerations
Brexit has not affected US LLC formation or EIN applications:
- EIN process is administered by US IRS β EU membership was never relevant
- US-UK tax treaty remains in effect (bilateral, not EU-related)
- Banking options unchanged β Mercury, Wise, etc. work the same
- Payment processing unaffected β Stripe US works for UK residents
Common UK Use Cases
Most UK residents getting EINs fall into these categories:
- Amazon FBA sellers targeting the US market
- SaaS founders seeking US investors or customers
- Consultants and freelancers with US clients
- E-commerce businesses wanting Shopify Payments US
- Content creators monetizing US audiences