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United Kingdom vs United States

Side-by-side comparison of the United Kingdom and the United States for founders choosing an English-language common-law jurisdiction.

Side-by-side

TaxationUnited KingdomUnited States
Corporate tax25%21%
VAT20%0%
Dividend tax0%30%
FormationUnited KingdomUnited States
Difficulty (1–5)12
Cost50 GBP500 USD
Time1 days2 days
Banking & PaymentsUnited KingdomUnited States
Banking difficulty (1–5)35
StripeYesYes
PayPalYesYes
WiseYesYes
OperationsUnited KingdomUnited States
Accounting difficulty (1–5)24
Payroll difficulty (1–5)24
Compliance difficulty (1–5)24
Market accessUnited KingdomUnited States
EU memberNoNo
EEA memberNoNo
CurrencyGBPUSD

When United Kingdom wins

  • You want the fastest possible incorporation (Companies House online ~24 hours) at minimal cost
  • You want to avoid US-style state-level sales tax nexus complexity
  • You want zero withholding tax on dividends paid to non-resident shareholders

When United States wins

  • You are raising US-institutional venture capital and need a Delaware C-corporation
  • Your primary customer base, sales motion, and exit market are US-centric
  • You want access to the deepest startup, M&A, and IPO market in the world

Related

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