How to Register a US Business from the UK (Bizvee Doc)

Overview

For UK founders, the United States is rarely a speculative market. It is usually the market where half the pipeline already lives — the SaaS trials from New York, the Shopify orders from Texas, the agency client in Chicago who keeps asking for a US invoice. At some point the friction of being a foreign supplier costs more than the paperwork of becoming a domestic one.

This Doc explains exactly how to register a US business from the UK: what to form, where, how to get a tax ID without a Social Security Number, how to bank from London, and how the structure interacts with HMRC. It assumes you are not relocating and have no US immigration status, because that is the situation for the overwhelming majority of British founders we work with.

Step 1: Confirm the US Entity Is Worth It

A UK limited company can sell into the United States all day long. Nothing requires a US entity. What a US entity buys you is friction removal:

Procurement acceptance. US mid-market and enterprise buyers frequently require a W-9, a US EIN and a US remit-to address. A UK Ltd triggers a W-8BEN-E and a vendor onboarding process that can add weeks.
Withholding relief. Certain US-source payments to foreign entities attract 30% withholding unless treaty forms are filed correctly. A US entity sidesteps the entire conversation.
Payment economics. USD-settled processing into a USD account removes conversion spread on every single transaction. On $40k a month, that spread is a salary line.
Investor readiness. US funds want Delaware. If you plan to raise stateside, a UK Ltd will eventually be flipped into a Delaware topco, and doing it later is more expensive than doing it now.
Marketplace access. Some US platforms and wholesale programmes still onboard domestic entities far more smoothly.

If none of these bite yet, wait. If two do, proceed.

Step 2: LLC or C-Corporation

LLC. Pass-through for US federal tax. Simple to run, cheap to maintain, no board formalities. For UK founders this generally works well: HMRC's treatment of US LLCs has been settled ground since the Anson case, and in practice most UK owners can claim relief for US tax suffered, though the analysis depends on how the LLC's profits are allocated. It is not automatic and it is worth a conversation with a UK accountant who has seen it before.

C-Corporation. A separate taxable entity paying 21% federal corporation tax. Cleaner conceptually for UK owners because a corporation is a corporation in both systems. Mandatory in practice if you want US venture capital, want to issue stock options to US hires, or want a structure that a US acquirer can buy without restructuring.

Rule of thumb. Services, agencies, ecommerce brands and bootstrapped software: LLC. Anything that will raise a priced round in the US or issue equity to American employees: Delaware C-Corp. A UK Ltd can be the shareholder of the US C-Corp, which keeps the group tidy — that is a common and sensible arrangement for British companies expanding rather than relocating.

Step 3: Pick the State

Delaware — the investor default. Predictable corporate law, well-understood by every US lawyer, expected by every US fund. Annual franchise tax applies and can surprise you if you authorise ten million shares without thinking about the calculation method.

Wyoming — the operator's choice for LLCs. Low annual fees, no state income tax, strong liability protection, minimal public filing of ownership. Excellent for agencies, consultancies, ecommerce and SaaS that will not raise US venture capital.

A state where you physically operate — if you hire a US employee or lease space, register where the activity is, or register elsewhere and then qualify as a foreign entity in that state. Both are legitimate; only one is cheap.

Compare the true annual cost before you commit using our US state filing and renewal fee explorer.

Step 4: File and Set Up the Basics

The formation package for a UK founder has four moving parts:

Name clearance in the chosen state.
Registered agent — a street address in-state that accepts legal service during business hours. Required by law; your Shoreditch office does not qualify. Bizvee provides this at $49/year.
US business address — separate from the agent, used for banking, Stripe verification and correspondence. $149/year with mail scanning through Bizvee.
Governing document — an operating agreement for an LLC, bylaws plus organisational resolutions for a corporation. Banks and payment processors ask for these routinely. Draft one in minutes with our free operating agreement generator.

Filing turnaround is one to five business days in most states.

Step 5: The EIN, and Why It Takes Longer Than You Expect

The EIN is your company's federal tax ID. It is free. It is also the step that consistently blows up UK launch timelines.

The IRS online tool requires the responsible party to have an SSN or ITIN. As a UK founder you almost certainly have neither, so you file Form SS-4 by fax or post and wait. Expect two to six weeks; longer in peak season. The application asks for the legal entity name exactly as filed, the formation state and date, the responsible party's name and foreign address, the reason for applying, and the principal activity.

The most common rejection causes we see from UK applicants:

Entity name on the SS-4 differs by a comma or "Ltd" versus "LLC" from the state certificate
The responsible party section left ambiguous
UK address formatted with the postcode in a field the IRS parser rejects
No signature, or a typed signature on a faxed form
Applying before the state has actually issued the certificate

You do not need an ITIN first. Write "Foreign" where the SSN is requested. If you later need a personal US tax number — for a treaty claim or a personal filing obligation — apply separately through our ITIN service.

Step 6: Open a US Bank Account from London

This is the step British founders worry about most and it is genuinely manageable today.

Traditional branch banks want a signatory physically present. Fintech business banking platforms built for startups do not, and they onboard UK-resident owners of US entities routinely. Prepare:

Certificate of Formation / Incorporation
EIN letter (CP 575 or 147C)
Operating agreement or bylaws with a banking resolution
Passport for every beneficial owner over the ownership threshold
Proof of residential address in the UK
A precise business description with expected volumes and customer geography
Your US business address, not a residential UK one

Approval is usually days, not weeks, when the paperwork is consistent. It fails when the address on the bank form does not match the address on the state filing, or when the business description is too vague to underwrite. Read our banking guide before you apply — the order of operations matters more than the choice of bank.

Step 7: Tax on Both Sides

US federal. A C-Corp files Form 1120 and pays 21%. A foreign-owned single-member LLC files Form 5472 with a pro-forma 1120 every year even at zero revenue; missing it is a $25,000 penalty. A multi-member LLC files Form 1065 with K-1s.

US state. Franchise tax and annual reports are due whether or not you traded.

Sales tax. Economic nexus can create a filing obligation in a state you have never visited once revenue or transaction counts cross thresholds. Ecommerce and digital-goods sellers hit this first. Our sales tax registration service handles it.

UK. Your UK company or personal return still reports worldwide income. Double tax relief under the UK–US treaty is available but must be claimed correctly, and the mechanics differ between an LLC and a C-Corp. Transfer pricing applies to any intercompany charges between your UK Ltd and the US entity, and the pricing needs a defensible basis.

Permanent establishment. If every decision is made from London, the US entity may still create UK tax exposure — or the reverse, if you build US-based operations. This is worth one paid hour with a cross-border adviser at the outset.

Step 8: Compliance Calendar

Obligation	Timing
State annual report / franchise tax	Fixed state date or anniversary
Federal return (1120 / 1065)	March–April, extension available
Form 5472	Annually with pro-forma 1120
Registered agent renewal	Annual
Sales tax returns	Monthly / quarterly / annual by state
Beneficial ownership reporting	At formation and on change
UK corporation tax and Companies House	Per HMRC / CH schedule

Bizvee tracks the US side in your dashboard and can run the filings through our bookkeeping and tax services.

Mistakes We See From UK Founders

Treating the EIN as instant. It is not, for you. Plan around six weeks.

Using a UK address everywhere. It passes the state filing and then blocks the bank and the processor.

Authorising too many shares in Delaware. The franchise tax calculation punishes it. Use a sensible share count and the assumed par value method.

Forgetting the US entity has its own year-end obligations even with no trade. Dormancy is a UK concept; the IRS does not share it.

Running both companies from one bank account. Separate the money on day one or the transfer pricing conversation becomes archaeology.

Realistic Timeline

Week 1: decide structure, clear the name, file the state documents, appoint agent and address
Weeks 1–6: EIN via SS-4
Weeks 6–8: banking and payment processors live
Month 2 onward: bookkeeping running, compliance dates in the calendar

Where Bizvee Fits

We handle formation, registered agent, US business address, EIN follow-through, governing documents, banking introductions and ongoing US compliance for UK founders every week. Begin with US company formation, or book a founder consultation to settle the LLC-versus-C-Corp question before anything gets filed.