The United States is one of the world's largest and most dynamic markets, attracting entrepreneurs from across the globe. For many founders in the UK and European Union, establishing a US company can open doors to American customers, investors, and partners. A question that comes up consistently is whether non-residents can legally own a US company.
The short answer is yes. Non-residents and non-citizens can own a US company. There are no general legal restrictions preventing foreign individuals from forming and owning a business in the United States. However, there are several practical, legal, and tax considerations that UK and EU entrepreneurs must understand before taking that step — and getting them wrong can be costly.
This guide explains how foreign ownership works, which structures are most commonly used, and the key compliance requirements involved.
Foreign Ownership of US Companies
US law allows foreign nationals to own 100% of a US business. You do not need to be a US citizen or hold a green card to establish a company. In fact, thousands of foreign entrepreneurs operate US-registered businesses while living entirely abroad. Foreign owners can form and hold membership interests or shares in most standard business structures, including Limited Liability Companies (LLCs), C-Corporations, and partnerships in certain circumstances. For most non-resident founders, the practical choice comes down to LLCs and C-Corporations — each with significantly different legal and tax implications.
Choosing the Right Business Structure
Limited Liability Company (LLC): An LLC is one of the simplest and most flexible structures available. It combines aspects of partnerships and corporations while providing limited liability protection — meaning your personal assets are generally protected from business debts. For foreign founders, an LLC offers relatively straightforward formation and administration, flexibility in how the business is taxed, and fewer ongoing corporate formalities compared to a corporation.
Tax treatment for foreign-owned LLCs can be complex, however. If the business earns income connected with US activities, that income may be subject to US federal taxes. In addition, specific reporting obligations apply to foreign-owned single-member LLCs — most notably the requirement to file Form 5472 combined with a pro-forma Form 1120. Failure to file carries penalties of up to $25,000 per year per form. For most UK and European founders running online service businesses or digital products, a Wyoming LLC is the most common and cost-effective starting point.
C-Corporation: A C-Corporation is the structure most commonly used by venture-backed startups. Companies seeking investment from US venture capital firms or planning to scale with equity financing typically choose this route. Benefits include a structure familiar to US investors, easier issuance of different classes of shares, and clear corporate governance. The principal downside is double taxation: the corporation pays corporate tax on profits, and shareholders may be taxed again when dividends are distributed. For founders not seeking VC funding, the LLC is generally the more efficient structure.
Popular States for Formation
Delaware: Delaware is widely considered the gold standard for US incorporation, particularly for C-Corporations. Its advantages include a well-developed body of corporate law, a specialised business court (the Court of Chancery), and strong familiarity among US investors. Most venture-backed US startups are incorporated in Delaware even when their operations are located elsewhere.
Wyoming: Wyoming is the most popular choice for foreign-owned LLCs. It has no state income tax, very low annual fees, minimal ongoing reporting requirements, and — critically for non-resident founders — strong privacy protections. Wyoming does not publicly list LLC members, making it the preferred formation state for founders who want to keep their ownership details off public record. Our Wyoming LLC formation service handles the entire process remotely.
New Mexico: New Mexico is an alternative worth considering for founders seeking low costs and minimal ongoing compliance. Like Wyoming, it has no annual report requirement for LLCs and charges no publication fees. It is less widely recognised than Wyoming among banking compliance teams, however, which can occasionally slow account opening.
Do You Need to Visit the United States?
In most cases, no. The entire formation process can be completed online with the help of a formation service or legal adviser. However, several practical steps require careful handling, including obtaining an Employer Identification Number (EIN) from the IRS, opening a US business bank account, and appointing a registered agent in the state of formation.
A registered agent is a person or service with a physical address in the formation state who receives official legal and government documents on behalf of the company. Every US company is required to maintain one — and this is one of the services we include in our formation packages. For the full list of documents you will need once your LLC is formed, see our banking documents checklist.
Opening a US Bank Account
One of the biggest practical challenges for non-resident founders is opening a US business bank account. Many traditional banks require the company's owners to appear in person to complete identity verification. Fintech platforms have changed this significantly, however, and remote account opening is now straightforward for most properly formed LLCs with an EIN in hand.
The most widely used options for non-resident founders are Mercury — the most popular choice among remote-owned tech companies and digital businesses — Relay, which is well suited to founders who want granular control over multiple accounts and budgets, and Wise Business, which is particularly strong for founders regularly converting USD to GBP or EUR. For a full breakdown of each platform and how to choose between them, see our guide to the best fintech tools for US LLCs.
Tax Considerations for Non-Residents
US federal taxes: If the business earns income that is "effectively connected" with US trade or business activities, it may be subject to US federal income tax. Selling goods or services to US customers or operating from within the US can create a taxable presence. Many UK and European founders running purely online businesses with no US employees or physical presence have limited US tax exposure — but this depends heavily on the specific facts of the business and requires professional assessment.
State taxes: Depending on where the company operates and where its customers are located, state taxes may apply. Some states impose corporate income tax, franchise tax, or sales tax on businesses with a nexus there. Wyoming has no state income tax, which is one reason it is popular with non-resident founders.
Form 5472 reporting: A single-member LLC owned by a foreign individual is classified as a disregarded entity but is still required to file Form 5472 combined with a pro-forma Form 1120 annually. This reports transactions between the LLC and its foreign owner. The penalty for non-filing is $25,000 per form per year — a significant exposure for founders who are unaware of the requirement. Our Enrolled Agent Richard Williams handles this filing for clients as part of our ongoing compliance service.
Tax treaties: The United States has tax treaties with the UK and most EU member states that can reduce or eliminate certain forms of double taxation. Because cross-border tax rules interact in ways that are not always intuitive, foreign founders are strongly advised to work with a tax professional familiar with both US and home-country obligations before making structural decisions.
Immigration Considerations
Owning a US company does not automatically grant the right to live or work in the United States. If a foreign founder intends to relocate or actively manage the company from within the US, they will need an appropriate visa — options can include the E-2 investor visa, though eligibility depends on nationality and investment levels. Many non-resident founders choose instead to operate their US companies remotely while remaining based in the UK or Europe, which is a perfectly valid approach that requires no US visa at all.
Advantages of Owning a US Company
Access to the American market: The US is the largest consumer market in the world. A US-registered company increases credibility with American customers and partners, making it easier to win contracts, integrate with US payment platforms, and close deals that might otherwise require a US entity.
Investment opportunities: US investors typically prefer investing in American entities, particularly Delaware C-Corporations. Structuring a company appropriately from the outset can make future fundraising considerably more straightforward.
Payment processing at US rates: Through a US LLC, UK and European founders access payment processors such as Stripe and PayPal at US domestic rates, with the full product suite — including features that are restricted or unavailable to non-US entities.
Global credibility: A US company can enhance a brand's international standing and facilitate partnerships with American technology platforms, suppliers, and distributors — opening doors that would otherwise require a US presence to access.
Key Challenges to Consider
Despite the benefits, foreign founders should be clear-eyed about the challenges involved in operating a US company from abroad:
- Cross-border tax complexity: Navigating US federal, state, and home-country tax obligations simultaneously requires professional guidance — mistakes are expensive
- Annual compliance requirements: US LLCs must meet federal reporting obligations (including Form 5472), state annual report requirements, and FinCEN BOI reporting under the Corporate Transparency Act
- Banking friction: Some banking platforms have more stringent KYC processes for foreign-owned entities; having all documentation prepared in advance is essential
- Bookkeeping and accounting: Managing US accounting remotely, in USD, alongside home-country obligations requires either capable software or a US-familiar accountant
Working with experienced formation, tax, and compliance providers from the outset reduces these risks considerably and keeps your company fully compliant from day one.
Ready to Form Your US LLC?
We help UK and European founders form US LLCs and obtain EIN numbers — entirely remotely. Our Enrolled Agent Richard Williams handles IRS paperwork directly and can advise on structures that remain compliant in both the US and your home country.
US Banking Documents Checklist
Best Fintech Tools for US LLCs
View Pricing