US LLC & UK Ltd for Course Creators: Tax & Banking in 2026

A US LLC offers immediate credibility and access to US-centric payment systems like Stripe, essential for global course sales. Buyers globally recognize US entities, fostering trust. The LLC can act as the front-facing sales entity for your digital products.

The UK Private Limited Company (Ltd) then serves as the operational hub, collecting revenue from the US LLC and handling expenses. The UK offers a stable, respected business environment with a clear tax framework, making it attractive for non-residents. This split allows for specific functions to be handled by the most advantageous jurisdiction.

The US LLC functions as the merchant of record and payment processor interface. Customers purchase courses from the US LLC. Crucially, the US LLC should not actively conduct business within the US, avoiding US income tax for non-resident owners.

The UK Ltd operates as the primary beneficial owner of the intellectual property (your courses) and the service provider to the US LLC. The UK Ltd invoices the US LLC for services (e.g., licensing the course content) ensuring profits are recognized by the UK entity. This intercompany agreement is vital for tax purposes and needs clear documentation.

Setting up Stripe with a US LLC is relatively straightforward. Stripe prefers US entities for many features and often offers better terms. You will need an EIN for your US LLC. This allows your US LLC to collect payments directly from global customers.

PayPal also integrates well with US LLCs. Ensure your account is set up as a business account belonging to your US LLC. You can then configure automatical payouts from Stripe and PayPal into your chosen bank account, typically linked to your UK Ltd.

Traditional US and UK banks are challenging for non-resident remote account openings. For your US LLC, Wise Business is a common choice, offering US dollar accounts and low-fee international transfers. Mercury is another strong contender for US LLCs, providing FDIC-insured accounts and advanced features, though access can be selective for non-US residents.

For your UK Ltd, Wise Business is also a primary option, allowing you to hold GBP and receive funds from your US LLC. Other fintech solutions like Revolut Business or traditional banks such as HSBC (if you have an existing relationship) might work, but Wise often proves more accessible for remote setup. These accounts facilitate intercompany transfers and expense payments.

For a single-member US LLC owned by a non-US resident, the entity is a 'disregarded entity' for US tax purposes. This means the LLC itself does not pay US federal income tax. Instead, its activities are reported on the owner's personal tax return, which for non-residents means zero US income tax if income is sourced outside the US.

Even with no US income tax liability, the US LLC must file Form 5472 and Form 1120 pro forma annually with the IRS. Failure to file these informational returns carries a minimum penalty of $25,000. This is a strict compliance requirement, not an income tax payment.

Your UK Ltd will be subject to UK Corporation Tax on its profits. As of 2026, the main rate for Corporation Tax is 25 percent for profits over £250,000 (approx. $310,000 USD). A small profits rate of 19 percent applies to profits below £50,000 (approx. $62,000 USD). Seek professional UK tax advice to optimize profit extraction.

If you sell courses to customers in the EU or UK, your UK Ltd will need to register for VAT (Value Added Tax) once revenue exceeds specific thresholds (e.g., £90,000 in the UK as of 2026). As a digital service provider, you will collect VAT based on the customer's country of residence. This involves either registering in each country or using the VAT MOSS (Mini One Stop Shop) scheme for EU sales.

Regularly review your intercompany agreement between the US LLC and UK Ltd. Ensure it accurately reflects the services provided and the pricing (arm's length principle) to avoid scrutiny from tax authorities. Document all transactions and transfers meticulously. Engaging a firm like Bastion Formations can help establish both entities correctly.

Stay updated on changes in tax laws in both the US and UK, particularly for digital services and international income. Compliance is key to maintaining the benefits of this dual structure without incurring unexpected penalties. Utilize cloud accounting software like Xero or QuickBooks to manage finances for both entities efficiently.