UK Ltd vs US LLC: how to unlock Stripe (and everything else) from any country

TL;DR: Stripe operates in 46 countries. If yours isn’t one of them, a UK Ltd (£100, 24 hours) or US LLC ($100-300, 1-2 weeks) gives you access to Stripe and every serious payment tool. Pick UK for speed and easy banking (Wise, Revolut). Pick US for zero federal tax on foreign income and US-only tools (Mercury, Relay). Either way: under $500, under two weeks.

46 countries have Stripe. 149 don’t.

If you’re building a SaaS from Colombia, Vietnam, Tunisia, or Pakistan, you can’t accept credit cards through the most popular payment processor on the planet. Not because your product is bad. Because you incorporated in the wrong country. Or worse - you didn’t incorporate at all because you assumed you had to do it where you live.

You don’t. You can incorporate a UK Ltd from anywhere. A US LLC from anywhere. No residency, no citizenship, no physical presence required. Most founders don’t know this because nobody tells them.

I did this. Incorporated a UK Ltd remotely from a country where Stripe wasn’t available. Whole process took about a week, cost under £100 for registration. Every tool I needed opened up immediately.

But the real insight isn’t about Stripe. It’s that every serious business tool assumes you have a US, UK, or EU entity. Stripe, Paddle, Mercury, affiliate programs, SaaS billing platforms. You solve ten problems by solving one.

Key takeaways:

• A UK Ltd costs £100 at Companies House, incorporates in 24 hours, and gives you Stripe + UK banking immediately
• A Wyoming LLC costs $102, has no state income tax for foreign owners, and opens Mercury, Relay, and Stripe
• Neither requires residency or citizenship in the UK or US
• UK banking (Wise Business, Revolut Business) is easier to get remotely than US banking (Mercury and Relay are US-entity-only)
• A single-member US LLC owned by a non-resident with no US-source income pays zero federal tax, but must file Form 5472 annually ($25,000 penalty if you don’t)
• This is Flag 3 (Business Incorporation) in the 7 Flags Framework

The problem: geography as a paywall

Stripe’s 46 supported countries are mostly the US, Canada, Western Europe, Australia, Japan, and a handful of others. The rest of the world is locked out.

I run a Shopify app with 20,000+ merchants. A big chunk of our business is in Australia, the US, and the UK. When founders from unsupported countries ask how to accept payments, I always give the same answer: get an entity in a country where the tools work.

But it’s not just Stripe. Here’s what requires a US or UK entity:

Tool	What it does	Entity needed?
Stripe	Payment processing	US, UK, EU, or other supported country
Mercury	Business banking (US only)	US LLC or C-Corp with EIN
Relay	Business banking (US only)	US LLC or C-Corp with EIN
Wise Business	Multi-currency account	UK Ltd, US LLC, or EU entity
Revolut Business	Multi-currency account	UK Ltd or EU entity
Paddle	Merchant of Record	Supports 30+ countries, but not all
Gumroad	Digital sales	Global (payouts via Stripe or PayPal)
Lemon Squeezy	SaaS billing	Stripe-supported countries only
Some affiliate programs	Revenue sharing	W-9 (US entity) or W-8BEN (foreign). Some programs restrict payouts by country.

One entity unlocks the entire stack.

Option 1: UK Ltd

The fastest, cheapest path to a working business entity with global payment access.

Formation: step by step

1. Choose a company name. Check availability on Companies House.
2. Get a registered office address. This must be a UK address. Virtual office services like 1st Formations, Rapid Formations, or Your Company Formations provide this for £40-80/year.
3. Complete identity verification. Since November 2025, all new directors must verify their identity through GOV.UK One Login or an Authorised Corporate Service Provider (ACSP). This is new. Budget an extra day.
4. File incorporation online. Through Companies House directly or through a formation agent.
5. Receive your Certificate of Incorporation. Usually same day or next business day.

Costs

Item	Cost
Companies House filing fee (online)	£100
Companies House filing fee (paper)	£124
Same-day incorporation (fast track)	£156
Registered office address (virtual)	£40-80/year
Formation agent package (all-in)	£50-200
Annual confirmation statement	£50
Total first year	£150-350

Timeline

24-48 hours from application to Certificate of Incorporation. Formation agents often get it done same day.

Banking

This is where UK Ltd has a clear advantage over US LLC. UK business banking for non-residents is straightforward.

Wise Business is the easiest. Apply online, no UK address needed for the account holder, multi-currency accounts in 40+ currencies. You can hold GBP, USD, EUR and convert between them at the real exchange rate. Most non-resident founders get approved within 1-3 business days.

Revolut Business works for UK Ltd companies. Apply online, get a UK sort code and account number. Good for everyday banking, though limits on some features for non-UK residents.

Traditional banks (HSBC, Barclays, NatWest) are harder remotely but possible if you visit the UK. Usually not necessary for a digital business.

UK taxes

Profit level	Tax rate
£0 - £50,000	19% (small profits rate)
£50,001 - £250,000	26.5% effective (marginal relief)
£250,000+	25% (main rate)

The important nuance: UK corporation tax applies to UK-sourced profits. If your company is registered in the UK but your customers, operations, and management are all outside the UK, you may have limited or no UK tax liability. This is where it gets into gray area territory and you need an accountant who understands non-resident UK company taxation.

Place of Effective Management (PoEM) matters here. If you’re making all the decisions from Bali, HMRC could argue the company is managed from outside the UK. That’s actually good for UK tax purposes (less UK tax) but could trigger tax obligations wherever you actually live. See CRS reporting obligations for how this information gets shared between countries.

Annual maintenance

• Confirmation statement: File once per year with Companies House (£50)
• Annual accounts: Must be filed. Micro-entity accounts are simple if revenue is under £632K
• Corporation tax return: File with HMRC annually, even if tax is zero
• Registered office: Maintain your virtual address (~£40-80/year)

Total annual maintenance: £150-300 if you’re small and use an accountant for basic filing.

Option 2: US LLC (Wyoming or Delaware)

The go-to for founders who want zero federal income tax on non-US income and access to the US banking and payment ecosystem.

Wyoming vs Delaware

Factor	Wyoming	Delaware
Formation fee	$102 (online)	$90 (+ $50-100 expedite)
Annual report	$50	None
Annual franchise tax	None	$300 minimum
Privacy	Strong. No public member disclosure	Weaker. More disclosure requirements
Asset protection	Strongest in the US	Good, not the best
Registered agent (typical)	$100-150/year	$100-150/year
Best for	Most foreign founders	VC-funded startups

Pick Wyoming unless you have a specific reason for Delaware. Delaware’s reputation is built on corporate law for C-Corps and venture-backed companies. If you’re a solo founder running a SaaS or services business, Wyoming is cheaper, more private, and equally functional.

Formation: step by step

1. Choose a name. Check availability on the Wyoming Secretary of State website.
2. Hire a registered agent. Required in the state of formation. Services like Northwest Registered Agent, Incfile, or ZenBusiness charge $100-150/year.
3. File Articles of Organization. Online through the Secretary of State. Wyoming processes immediately.
4. Get your EIN (Employer Identification Number). This is the bottleneck. Non-residents cannot apply online. You must file Form SS-4 by fax (855-215-1627 domestic, 304-707-9471 international) or mail.
5. Open a business bank account. With EIN in hand, apply to Mercury, Relay, or Wise Business.
6. Set up Stripe. With your LLC details and US bank account, activate Stripe.

The EIN bottleneck

This is the part nobody warns you about. The IRS is currently processing EIN applications from non-residents in 6-12 weeks by fax, and up to 3+ months by mail. The IRS has been understaffed and processing times have ballooned since 2024.

Options to speed it up:

• Fax is faster than mail. Always fax.
• Third-party services (like Incfile or a CPA) can sometimes expedite by calling the IRS directly
• Stripe Atlas ($500) handles EIN as part of the package and may get it faster through bulk processing

Budget 4-8 weeks from LLC formation to having a working EIN. This is the main reason UK Ltd is faster overall.

Costs

Item	Cost
Wyoming Articles of Organization	$102
Registered agent (annual)	$100-150
EIN application	Free (IRS)
Total first year	$200-250
Delaware alternative: formation + franchise tax	$90 + $300 = $390+

Banking

US banking for non-residents is harder than UK banking. Full stop.

Mercury is the go-to for US LLC founders. It’s a US-only platform - you need a US entity (LLC or C-Corp) with an EIN. No US address needed for the account holder, which is why it’s popular with foreign-owned LLCs. But Mercury tightened approvals in 2025. Some founders report rejections or extended verification. Still the best option if you get approved.

Relay accepts US LLCs with EINs. Mixed reports from non-residents. Some get approved smoothly, others hit additional verification requests.

Wise Business (US) works as a backup. Not a full bank account, but gives you USD account details and multi-currency support. Accepts US LLCs.

The banking strategy: Apply to Mercury first. If rejected, try Relay. Wise Business as the safety net. Having multiple options matters because any single provider can change their policies overnight.

US taxes for foreign-owned single-member LLC

This is the part that makes the US LLC attractive.

A single-member LLC is a “disregarded entity” for tax purposes. It’s not taxed at the entity level. Income passes through to the owner. If the owner is a non-resident alien with no effectively connected income (ECI) with a US trade or business, the federal tax on that income is zero.

Translation: if you’re not a US person, you don’t live in the US, and your customers aren’t specifically US-sourced income, you likely owe zero federal income tax.

Requirement	Details
Entity type	Single-member LLC (disregarded entity)
Owner status	Non-resident alien (not US citizen/resident)
Income type	Not effectively connected with US trade or business
Federal income tax	$0
Form 5472 filing	Mandatory every year
Penalty for not filing Form 5472	$25,000 per year
State income tax (Wyoming)	$0 (no state income tax)

The catch: Form 5472 is not optional. Even if you owe zero tax, you must file this form every year with a pro forma Form 1120. Miss it and the IRS hits you with a $25,000 penalty. Hire a CPA who handles foreign-owned LLCs. Budget $300-500/year for this filing.

You still owe taxes somewhere. The US LLC doesn’t tax you. But your country of tax residency will want their share. The LLC is tax-transparent, so your home country sees the income as yours. This is where territorial taxation countries become powerful. If you live in a country that doesn’t tax foreign income, the combination of a US LLC plus territorial tax residency means zero tax on both ends. That’s not a loophole. It’s how the system is designed.

Head-to-head comparison

Factor	UK Ltd	US LLC (Wyoming)
Formation cost	£100 ($125)	$102
Formation speed	24 hours	1-2 days (LLC) + 4-12 weeks (EIN)
Registered office/agent	£40-80/year	$100-150/year
Annual maintenance	£150-300/year	$150-500/year (incl. CPA for 5472)
Banking ease (non-resident)	Easy (Wise, Revolut)	Harder (Mercury tightening)
Stripe activation	Immediate after bank account	Immediate after bank account
Corporate tax rate	19-25% on UK profits	0% federal (if no US-source income)
Annual filing complexity	Moderate (accounts + tax return)	Low (Form 5472 + annual report)
Privacy	Low (public register)	High (Wyoming)
Best for	Speed, EU/UK customers, easy banking	Zero-tax structure, US ecosystem

Which one should you pick?

Pick UK Ltd if:

• You need Stripe working this week, not this quarter
• Your customers are in the US, Europe, or Australia (UK entity is trusted globally)
• You want easy banking without Mercury’s approval lottery
• You’re comfortable with 19% tax on small profits (or structured to minimize UK-source income)

Pick US LLC (Wyoming) if:

• You want zero federal income tax on non-US income
• You’re already planning a territorial tax residency
• You can wait 4-12 weeks for the EIN
• You want the privacy and asset protection Wyoming offers
• You plan to use US-only tools (Mercury, Relay, US affiliate programs)

Pick both if:

• You want UK banking ease plus US tax structure
• Your business has both US and UK/EU customers
• You’re building a multi-flag setup under the 7 Flags Framework

Risk ratings

Strategy	Risk	Notes
UK Ltd with genuine business activity	🟢 By the Book	Standard structure. File accounts, pay tax on UK profits.
US LLC with no US-source income, filing Form 5472	🟢 By the Book	Legal and well-documented. Just don’t skip the filing.
UK Ltd claiming zero UK tax without substance analysis	🟡 Gray Area	HMRC can challenge. Get professional advice on PoEM.
US LLC + territorial tax residency, zero total tax	🟡 Gray Area	Legal if structured properly. Your home country’s CFC rules matter. Check CRS implications.
Using someone else’s entity or “nominee” arrangements	🔴 Aggressive	Don’t. Payment processors will shut you down, and it’s fraud in most jurisdictions.

The Stripe Atlas alternative

Worth mentioning: Stripe Atlas costs $500 and handles everything. Delaware C-Corp or LLC, registered agent, EIN, bank account (Mercury), and Stripe activation. All in one package.

The tradeoff: you pay more upfront, you get a Delaware entity (higher annual costs than Wyoming), and you have less control. But if you value speed over savings, Atlas removes every friction point.

	DIY UK Ltd	Stripe Atlas	DIY Wyoming LLC
Total first-year cost	~£200 ($250)	$500 + state fees	~$250
Time to working Stripe	1-2 weeks	2-4 weeks	6-14 weeks
Annual cost after year 1	~£150-300	~$400-600	~$200-500
Complexity	Low	Lowest	Medium

Don’t overthink it

Most founders from unsupported countries spend weeks researching the “perfect” structure. Meanwhile, their competitors are already processing payments.

Pick one. UK if you need speed. US if you want the tax structure. Either way, you’re looking at under $500 and a few weeks to go from “Stripe doesn’t support my country” to having a real business entity with full access to global payments.

The entity is Flag 3 in a larger strategy. Once you have it, you can optimize banking (Flag 4), tax residency (Flag 2), and everything else. But Flag 3 comes first because without a business entity in a supported country, you don’t have a business. You have a side project.

Start there. Optimize later.