UK vs. USA Company Formation: Which is Better for You?
10/7/20253 min read
UK vs. USA Company Formation: Which Is Better for You?
Starting an international business is exciting, but one of the first and most important decisions you’ll make is where to register your company.
Two of the most popular choices for global entrepreneurs are the United Kingdom (UK) and the United States of America (USA) — both known for strong economies, transparent regulations, and business-friendly ecosystems.
In this guide, we’ll break down the key differences between UK and USA company formation to help you choose the best jurisdiction for your goals.
1. Business Structure Overview
United Kingdom
The most common structure for entrepreneurs is the Private Limited Company (Ltd).
It’s similar to an LLC in the US and offers limited liability protection, meaning your personal assets are separate from your business obligations.
Popular UK structures:
Private Limited Company (Ltd) — suitable for most small-medium businesses
Limited Liability Partnership (LLP) — ideal for professional firms
Sole Trader — for freelancers or individuals starting out
United States
The most common structure is the Limited Liability Company (LLC), though some businesses choose a C Corporation (Inc) if they plan to raise investment capital.
Popular US structures:
LLC — flexible taxation and management
C Corporation — preferred by investors and startups
S Corporation — tax-efficient option for US residents only
2. Formation Process and Speed
Feature UK USA Registration Time Usually within 24 hours 1–3 business days (varies by state) Filing Authority Companies House Secretary of State (varies by state) Online Formation ✅ Yes ✅ Yes Minimum Directors/Owners 1 1
✅ Formation Corp can help you register both UK and USA companies quickly and fully online, no matter where you live.
3. Costs and Maintenance UK
Formation fee: from £12 (Companies House)
Annual accounts & confirmation statement required
Accounting & tax filing: mandatory each year
USA
Formation fee: varies by state ($50–$500)
Annual report and state fee: required in most states
Registered agent fee: typically $100–$200/year
💡 Tip: Delaware and Wyoming are popular for their low fees and business-friendly laws.
4. Taxation Differences
United Kingdom
Corporate tax rate: 25% (small profits may qualify for lower rates)
Dividends: may be taxed separately for UK residents
No state-level taxes
United States
Federal corporate tax: 21%
State taxes: 0%–12%, depending on where your company is registered
LLCs can choose pass-through taxation (profits taxed personally, not at company level)
5. Privacy and Public Disclosure
Aspect UK USA Director/shareholder info Publicly available on Companies House Varies by state (some private) Registered address Public Often private (registered agent address used) Beneficial ownership reporting Required (PSC Register) Required (FinCEN BOI reporting from 2024)
If privacy is important, certain US states like Wyoming or Delaware offer more discretion compared to the UK’s open public registry.
6. Banking & Payment Integration
Both the UK and US offer excellent business banking options, though access can depend on your residency.
UK: Business accounts can be opened with fintechs like Wise, Revolut, or Tide, even for non-residents.
USA: Non-resident founders can open accounts with Mercury, Relay, or Brex (with EIN).
Formation Corp can assist with bank account setup for both jurisdictions.
7. Reputation and Global Acceptance
UK companies are trusted globally — great for working with European clients and accessing UK payment systems.
US companies enjoy prestige and global recognition, especially for tech startups and e-commerce businesses.
If your target market is Europe or the UK, choose a UK Ltd.
If your audience is North America or global tech, a US LLC or C-Corp may fit better.
8. Which Should You Choose?
Goal Recommended Jurisdiction Easy and affordable setup UK Seeking investment or venture funding USA (Delaware C-Corp) Greater privacy USA (Wyoming or Delaware LLC) European operations UK Ltd E-commerce or global operations USA LLC Non-resident entrepreneur UK or US (both allow it)
9. Formation Corp Can Help
At Formation Corp, we simplify international business formation.
Whether you want to register a UK Ltd or US LLC, our team handles everything — from documentation and registered address to EIN, tax ID, and bank account assistance.
✅ Fast & compliant registration
✅ No hidden fees
✅ Full support for non-residents
✅ Expert guidance for UK and USA setup
Conclusion
Both the UK and USA offer excellent opportunities for entrepreneurs.
Your best choice depends on where your clients are, how you plan to grow, and your tax strategy.
If you’re unsure, Formation Corp can provide a free consultation to help you select the right structure for your business goals.
Ready to start your company?
👉 Form Your Company with Formation Corp — Fast, Simple, and Secure.
Author:
Formation Corp Editorial Team
Helping global entrepreneurs establish UK and US companies with confidence.