Founders often ask which country is the best place to form a company. There is no single answer. A US LLC, a UK private limited company and a Hong Kong private limited company are different legal structures with different yearly duties. The better question is which one fits your customers, your suppliers and the work you are prepared to do after formation.
The questions below will not make the decision for you, but they will make your first conversation with an adviser much more productive.
1. Where are your customers?
Start with the market you plan to sell into. Sellers focused on amazon.com and US customers often look at a US LLC first. Sellers targeting UK customers or the amazon.co.uk marketplace often consider a UK company. Businesses that buy from manufacturers in Asia, or sell to customers across the region, may look at Hong Kong. Many businesses start with one market and add a second company later.
2. What will you need to do every year?
Formation is a one-off. Compliance is permanent. Before choosing, write down what each option involves after the certificate arrives:
- US LLC: state annual reports or franchise taxes in many states, a registered agent in the formation state and federal tax reporting, which for foreign-owned single-member LLCs generally includes an annual information return.
- UK LTD: annual accounts and a confirmation statement filed with Companies House, Corporation Tax with HMRC, a UK registered office address and identity verification for directors and people with significant control.
- Hong Kong private limited company: an annual return, business registration renewal, a locally qualified company secretary, a Hong Kong registered office, and audited financial statements supporting its profits tax return.
These obligations change over time. Check the current position with the official sources, such as the IRS, Companies House and the Hong Kong Companies Registry, before you commit.
3. Who will own and run the company?
List the owners, where each person lives and who will act as director or manager. Each structure records ownership differently. A US LLC has members. UK and Hong Kong companies have shareholders and directors. The UK and Hong Kong both keep registers of the people who ultimately control the company.
4. How will you get paid?
Banks and payment providers decide for themselves which companies they accept, and their criteria depend on the company's country and the owners' residence. Ask yourself which marketplaces and payment providers you need, then check their current eligibility rules. No company structure guarantees a bank or payment account.
5. What will it cost to keep, not just to start?
Add up the yearly costs: government fees, registered agent or secretary services, a registered office, accounting and, in Hong Kong, an audit. A lower formation fee can be misleading if the annual costs are higher.
6. Do you need tax advice first?
Almost certainly, if you have significant income, live in a country with its own rules on foreign companies, or plan to use more than one entity. Company formation support helps you set up the company; a qualified tax adviser tells you how it will be taxed in your situation.
Next steps
Compare the three options on our service pages: US LLC Formation, UK LTD Formation and Hong Kong Company Formation. When you are ready, tell us about your plans and we will send a tailored quotation.
About the author
Zoya Shahbaz is Managing Director of ECom Seller Core and writes about company formation. Meet our team.
This article is general information, not legal or tax advice. Rules and procedures change; check current official sources or ask a licensed professional about your situation.