Can a non-resident own a US LLC?

Yes. Non-residents can be members of a US LLC. The filing itself is usually straightforward; the harder parts are obtaining a tax identifier and opening banking, and you may still have obligations in your country of residence.

Is an LLC cheaper than a Ltd?

Not reliably. Formation fees differ by state and by provider, and several states charge annual franchise fees that exceed typical UK filing costs. Compare the total annual cost, not the setup fee.

Can I change structure later?

Generally yes, though it involves new registrations, transferring contracts and accounts, and possible tax consequences. It is a reason to choose carefully, not a reason to freeze.

LLC vs Ltd: which should you choose?

6 min read · Updated 2026-08-13

Short answerAn LLC is the standard limited-liability vehicle in the United States; a Ltd is its closest equivalent in the United Kingdom and much of the Commonwealth. In practice the choice is decided by where you live, where your customers pay from and where you file taxes — not by which one sounds better. If you are US-based and selling to US customers, an LLC is the default. If you are UK-based, a Ltd is the default. Registering abroad to chase a lower rate usually creates more filing obligations, not fewer.

What they have in common

Both create a legal person separate from you. The company signs contracts, holds the bank account, owes the debts and — if things go wrong — is generally the entity creditors pursue rather than your personal assets.

Both require a registered address, a public filing, some form of annual return, and separate books. Neither is a way to avoid tax; both are a way to organise a business properly.

Where they differ

Taxation is the biggest divergence. A US LLC is, by default, a pass-through: profit is reported on the owners' returns rather than taxed at company level, unless an election is made to be taxed as a corporation. A UK Ltd is a separate taxpayer: it pays corporation tax on profit, and you are taxed again personally on salary or dividends taken out.

Administration also differs. A Ltd files annual accounts and a confirmation statement with Companies House, and the register is publicly searchable in detail. LLC obligations vary by state — some are light, some involve annual reports and franchise fees.

How to actually decide

Start with residence and substance. Where do you live, where do you work, and where are your customers? That answers it in most cases, because tax authorities look at where the business is really run, not where the certificate was issued.

Then check what your payment processor and bank need. An entity you cannot open a business account for is not a useful entity.

Finally, write the decision down in one paragraph with your reasoning. If an accountant later disagrees, you can change it — changing structure is inconvenient, not impossible.