Cross-Border Advisory
US–UK business structuring
For a US owner, the way a UK company is structured decides how heavy the US tax layer is. A UK limited company is usually a controlled foreign corporation, bringing Form 5471 and potential GILTI tax on profits before they are distributed — but elections like check-the-box and Section 962 can transform that position. We model the structure across both systems, make the elections on time, and carry them through into the actual filings.
A UK company is straightforward to set up — and that is exactly the trap for American owners. The same incorporation that is routine for a British founder quietly creates US reporting and, potentially, current US tax on profits the company has not even distributed, because the US treats most US-owned UK companies as controlled foreign corporations.
The structure and the elections are where this is won or lost. Check-the-box and Section 962 can each transform how a UK company is taxed in the US — for better or worse — and both are time-sensitive and hard to unwind. We model the options against your numbers, make the elections deliberately, and then handle both sides of the resulting filings.
Structuring at a glance
- UK company
- Usually a CFC
- Reporting
- Form 5471
- Profit tax
- GILTI / NCTI
- Key elections
- Check-the-box, §962
- Timing
- Often irreversible
- Goal
- UK tax credits in US
Who this is for
- Americans about to incorporate a UK company
- US owners of existing UK limited companies
- Founders weighing check-the-box or Section 962
- Contractors deciding between sole trader and limited
- Businesses with US and UK ownership
- Anyone facing Form 5471 or GILTI for the first time
How it works
A clear path, start to finish
Book a consultation
We review your business, ownership and plans.
Model the structure
We test entity options and elections against your numbers.
Elect on time
We make and document the elections before the deadlines bite.
Handle both sides
UK accounts and Corporation Tax plus US Form 5471 and personal return.
Investment
Bespoke, complexity-based pricing
Fees reflect the complexity of your situation — never a one-size template.
- £550 30-minute consultation
- Paid strategy session for structuring, credited to later work
- Entity and election options modelled to your figures
- Elections made on time and carried into both filings
Frequently asked questions
Because a UK limited company owned by a US person is usually a controlled foreign corporation, which brings Form 5471 reporting and can subject the company’s profits to US tax under the GILTI/NCTI rules before any distribution. The structure you choose — and the elections you make — determine how heavy that US layer is. Get it right and the UK tax largely credits against the US; get it wrong and you can face US tax on profit you never drew.
The check-the-box election lets the owner choose whether a UK company is treated for US tax as a corporation or as a "disregarded" pass-through entity. Disregarding the company can avoid the corporate-level CFC and GILTI machinery and simplify reporting, but it can also create self-employment tax exposure and a deemed liquidation on election. It is genuinely useful in the right case and damaging in the wrong one, so it should always be modelled before filing.
A Section 962 election lets an individual US shareholder be taxed on GILTI and Subpart F income at corporate rates and claim a credit for the foreign corporate tax the company has already paid. For an American with a profitable UK company it often reduces or removes the US GILTI charge, because the UK Corporation Tax becomes creditable — though it adds a second layer of tax when profits are later distributed. Whether it helps depends on your numbers.
Yes. We advise on the structure, make and document the elections on time, and then handle both the UK company accounts and Corporation Tax and the US owner’s Form 5471 and personal return — so the structure is actually carried through correctly rather than just recommended.
Structure it right before you incorporate
Book a consultation to model your company across the UK and US before the structure is set.