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UK Ltd vs US LLC / C-Corp for International Founders

The UK Ltd and the US Delaware LLC or C-Corp are the two most globally recognised company structures for English-speaking founders. The UK offers simplicity and fast formation. The US is unmatched for VC fundraising (C-Corp) and offers a highly flexible structure (LLC). Both can be formed by non-residents without visiting the country.

Side-by-side comparison

Category UK US (Delaware)
Primary entity types Private Company Limited by Shares (Ltd) LLC (pass-through) or C-Corp (VC-standard)
Corporate tax 19–25% on worldwide profit 21% federal + state (C-Corp); pass-through for LLC
Resident director required No No
Formation speed 24–48 hours (online) 1–2 business days (Delaware same-day available)
Formation cost (govt fee) £50 ≈ US$90–140 (Delaware LLC/Corp state fee)
Annual compliance Confirmation statement + annual accounts Annual franchise tax + registered agent fee
VC fundraising readiness Good — used for European VC rounds Excellent — C-Corp is the gold standard for US VC
Banking access Excellent — UK fintech hub, major international banks Good — US banking accessible for Delaware entities
US client / payment access Good — most US services accept UK entities Excellent — preferred by many US clients and platforms
Equity / stock options Share options via EMI or unapproved scheme C-Corp stock options — the VC-standard equity model

Our verdict

UK

Best for founders who want a widely recognised, low-maintenance entity for invoicing international clients or building a credible professional profile.

US (Delaware)

Best for founders raising US venture capital (C-Corp), wanting pass-through taxation flexibility (LLC), or needing a US legal entity for contracts, payments, or banking.

Frequently asked questions

Should I form a UK Ltd or a US LLC as a freelancer?

If you work mainly with UK or European clients, a UK Ltd is simpler and less expensive to maintain. If you work primarily with US clients or platforms that prefer a US entity, a Delaware LLC (pass-through taxation, no corporate tax at the entity level for most non-US members) is a strong choice. Both can be formed without visiting the respective country.

Do I need a US bank account for a Delaware LLC?

Not strictly, but it is helpful for receiving USD payments and using US services. Many international founders use Wise, Mercury, or Relay for their US entities. A US EIN (Employer Identification Number) is required before opening a US bank account — Nomadic Go provides EIN support as part of our US formation service.

Is a US C-Corp required for raising VC in the UK?

No — many UK and European VC rounds are done through a UK Ltd or other European structure. However, if you are raising from US VCs or planning a US-based cap table with SAFE notes or preferred stock, a Delaware C-Corp is strongly preferred by US investors.

Can Nomadic Go form a UK Ltd and a US LLC for me?

Yes. Nomadic Go provides formation services for both the UK and US (Delaware LLC and C-Corp). Government filing fees are separate from our service fee. We also provide EIN support for US entities.

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