US LLC vs UK Ltd for Pakistani Sellers: Which Should You Choose?
By Shaheer Khan, founder of Markify Ecommerce
Pakistani sellers who want Stripe, foreign business banking, Walmart, TikTok Shop or easier marketplace payouts usually end up choosing between two structures: a US limited liability company (LLC) or a UK private limited company (Ltd). Both are legitimate for non-resident owners and both can be formed remotely. They suit different markets and come with very different tax and filing duties.
This is a general guide, not tax advice. Speak to an accountant in the relevant country and in Pakistan before deciding.
The quick decision
- Selling mainly to the US (Amazon US, Walmart, TikTok Shop US, a Shopify store for US buyers): a US LLC is usually the better fit.
- Selling mainly to the UK and Europe (Amazon UK, eBay UK, TikTok Shop UK, UK buyers on your own site): a UK Ltd is usually the better fit.
- Selling to both: many sellers start with one and add the other once the second market is proven.
Side-by-side comparison
| US LLC (for example Wyoming) | UK Ltd | |
|---|---|---|
| Best markets | US marketplaces and US customers | UK marketplaces and UK/EU customers |
| Marketplaces that need it | Walmart, TikTok Shop US | TikTok Shop UK |
| Tax ID | EIN from the IRS (by fax or post for non-residents without an SSN) | Company number on incorporation; Corporation Tax UTR from HMRC |
| How profits are taxed | A single-member LLC owned by a non-US person is a "disregarded entity"; whether US income tax applies depends on whether the income is connected to a US trade or business | The company pays UK corporation tax on its profits (currently 19% for small profits up to 25% at higher profits) |
| Main yearly filings | Form 5472 + pro forma Form 1120 to the IRS; state annual report | Annual accounts, confirmation statement, company tax return (CT600) |
| VAT or sales tax | US sales tax: marketplaces usually collect it; your own store may need to register in states where you pass thresholds | UK VAT: marketplaces collect VAT on many sales of goods; registration may still be needed, especially if you hold stock in the UK |
| Public information | Wyoming does not require member names in the public filing | Directors and people with significant control appear on the public register (with a service address) |
| Payments | Stripe US, Shopify Payments (subject to verification), US business accounts | Stripe UK, Shopify Payments UK (subject to verification), UK business accounts |
| Typical ongoing cost | Registered agent + state fee + tax filing | Registered office + accountant for accounts and tax returns |
Fees, thresholds and rules change. Treat the table as a starting point and check current rules before you act.
When a US LLC makes sense
- Your main customers are in the US.
- You want to sell on Walmart Marketplace or TikTok Shop US.
- You want Stripe US or a US business account for a US-facing Shopify store.
- You want to buy from US wholesalers who sell only to businesses with a US tax ID.
Watch out for:
- Form 5472. A non-resident-owned single-member LLC must file it every year with a pro forma Form 1120, even with no US tax due. The penalty for not filing is $25,000.
- State choice. Wyoming and New Mexico are common for low cost; Delaware has a $300 annual tax. See Wyoming vs Delaware.
- US tax position. Whether profits are taxed in the US depends on the facts of your business, such as US employees or offices. Do not assume "zero tax" without advice. See our plain-English US LLC tax overview.
When a UK Ltd makes sense
- Your main customers are in the UK or Europe.
- You want to sell on eBay UK, Amazon UK or TikTok Shop UK.
- You want Stripe UK or a UK business account.
- You prefer a structure where the company's tax position is straightforward: it pays UK corporation tax on its profits.
Watch out for:
- Corporation tax and accounts. You will need an accountant for annual accounts and the company tax return.
- VAT. Selling goods into the UK can involve VAT registration depending on where the goods are when sold and how you sell. Marketplaces collect VAT on many sales, but not all.
- Companies House rules. Directors and people with significant control must verify their identity under the newer Companies House rules, and filing fees were increased in 2026.
See our step-by-step guide to UK Ltd formation and Stripe from Pakistan.
What both have in common
- You must use your real identity as the owner. Never use someone else's name.
- Keep the company's money separate from your personal money.
- Declare foreign income and assets in your Pakistani tax return, and bring money home through proper banking channels.
- Expect identity and business checks from banks and payment providers, and keep your company details consistent everywhere.
Can I have both?
Yes. Some sellers run a US LLC for US sales and a UK Ltd for UK and European sales. Each has its own filings and costs, so add the second only when the second market justifies it.
Frequently asked questions
Which is cheaper?
Formation costs are similar. Ongoing costs depend more on accounting: a UK Ltd needs annual accounts and a tax return; a US LLC needs Form 5472 and state filings. Get quotes for the yearly compliance, not just the setup.
Which is better for Amazon?
Amazon accepts Pakistani sellers directly, so neither is required. Choose based on where you sell and how you want to be paid. See do Pakistani sellers need a company?
Can Markify set up either one?
Yes. See our US company formation and UK Ltd formation services.
Work with Markify Ecommerce
Markify Ecommerce (listed on Google Maps as Markify Ecommerce - Unicored Technologies) is an ecommerce marketplace management agency in Bahria Orchard, Lahore. We manage Amazon, eBay, Walmart, Shopify, Etsy and TikTok Shop accounts, and we set up US LLCs and UK Ltd companies for Pakistani sellers.
- Office: Central Block, Bahria Orchard, Raiwind Road, Lahore 55150, Punjab, Pakistan
- Phone & WhatsApp: +92 321 3131641
- Free account audit: Send us your store or account details and we will reply with the first fixes we would make.