The United States is the world's largest consumer market, and for UK and European entrepreneurs, forming a US company has never been more accessible. Whether you are a freelancer, SaaS founder, e-commerce operator, or professional services provider, establishing a US legal entity can unlock American clients, US payment processors, venture capital, and global credibility — all without ever boarding a transatlantic flight.
This guide walks through everything you need to know about starting a US company as a non-resident: choosing the right state and entity type, the formation process step by step, tax obligations, and ongoing compliance. For the question of whether non-residents can legally own a US company at all, see our guide on non-resident ownership of US companies.
Why Form a US Company?
Many UK and European founders assume they can simply serve US clients from their home country — and technically they can. But operating through a US legal entity offers significant practical advantages:
- Access to US payment processors — Stripe, PayPal, and Braintree at US domestic rates, with the full product suite
- US business banking — Mercury, Relay, and Wise Business accounts that receive ACH payments without wire delays or fees
- Credibility with US clients — domestic invoices, US contracts, and a US bank account remove friction from the sales process
- Eligibility for US venture capital — most US VCs require a US entity, typically a Delaware C-Corp
- Hiring US contractors and employees more easily
Choosing the Right State
As a non-resident, you have full flexibility over which state to form in. Three states dominate for foreign founders:
Wyoming is the top choice for LLCs. Low annual fees (minimum $60 per year), no state income tax, strong privacy protections with no public listing of members, and a straightforward formation process make it the most popular state for UK and European founders running digital businesses and service companies. Our formation service is built around Wyoming LLCs for precisely these reasons.
Delaware is the standard for corporations and venture-backed startups. Delaware's Court of Chancery is the most sophisticated business court in the US, and most US VCs expect or require Delaware incorporation. If raising institutional capital is part of your plan, Delaware is almost certainly the right choice.
New Mexico requires no annual report and no annual fee for LLCs — the lowest-maintenance formation state available. It is popular among digital nomads and founders who want a US legal entity with minimal ongoing administrative overhead. Wyoming remains more widely recognised among banking compliance teams, which can occasionally matter at the account opening stage.
LLC or Corporation?
For most non-resident founders, a Limited Liability Company is the preferred structure. LLCs offer pass-through taxation by default (profits are not taxed at the entity level in the US for most non-resident owners), simpler ongoing compliance than a corporation, and no restrictions on foreign ownership. A C-Corporation makes more sense if you are planning to raise venture capital or issue stock options — most US VCs will not invest in an LLC. For bootstrapped businesses and service companies, the LLC is almost always the simpler and more tax-efficient choice.
The Formation Process: Step by Step
Step 1 — Choose your state and entity type: Use the guidance above. Most non-resident service businesses start with a Wyoming LLC.
Step 2 — Appoint a registered agent: Every US company must have a registered agent — a person or service with a physical address in the formation state who receives legal documents on your behalf. Annual cost is typically $50–$150. We include registered agent service in our formation packages.
Step 3 — File your Articles of Organization: These are filed with the Secretary of State in your chosen state. Filing fees range from $50 (New Mexico) to $100 (Wyoming) to $110 (Delaware). Processing times vary from same-day to two to four weeks depending on the state and whether expedited filing is selected.
Step 4 — Obtain your EIN: Your company's IRS tax ID number, required for banking, payment processors, and tax filings. Non-residents apply by fax or phone using IRS Form SS-4 — the online tool requires an existing US taxpayer ID. Our Enrolled Agent Richard Williams handles EIN applications directly. See our full guide on how non-residents get an EIN.
Step 5 — Open a US business bank account: With your LLC formed and EIN in hand, you can apply to Mercury, Relay, or Wise Business. Have your formation documents, EIN confirmation letter, passport, and proof of address ready before applying. See the full banking documents checklist.
Tax Obligations for Non-Resident Owners
US tax for foreign-owned entities is nuanced and professional advice is strongly recommended. The key principles:
Disregarded entity and Form 5472: A single-member LLC owned by a non-resident is treated as a disregarded entity. It files Form 5472 attached to a pro-forma Form 1120 annually — an informational return, not a tax return. The $25,000 penalty for non-filing applies regardless of whether any tax is owed. See our Form 5472 guide.
Effectively Connected Income: If you perform all services remotely from outside the US, your income is generally not Effectively Connected Income and does not trigger US federal income tax. See our guide on ECI explained.
BOI reporting: Under the Corporate Transparency Act, your LLC must file a Beneficial Ownership Information report with FinCEN. See our CTA guide.
Home country tax: You may still owe tax in your home country on worldwide income. Consult a local adviser familiar with cross-border structures.
Common Questions from UK and European Founders
Do I need to visit the US to form a company? No. The entire process — filing, EIN, and banking with the right providers — can be completed remotely.
Can I use my UK or European address? Yes. Your personal mailing address can be outside the US. Your registered agent must have a physical address in the formation state.
How long does the whole process take? From start to operational company, most founders complete the process in two to four weeks, with the EIN application typically being the longest step.
Do I need a US visa to own a US company? No. There is no visa or immigration requirement to own a US LLC or corporation as a foreign national.
Ready to Start Your US Company?
We help UK and European founders form US LLCs and obtain EINs remotely. Our licensed Enrolled Agent Richard Williams handles IRS paperwork directly and advises on cross-border compliance.
Can Non-Residents Own a US Company?
US Banking Documents Checklist
Maintaining Good Standing — Annual Compliance
View Pricing