LLC vs LTD: Which One is Better for Your International Online Business

If you're launching an online business that sells globally—on platforms like Shopify, Amazon, Etsy, or even through freelancing—you've likely come across two popular legal structures: LLC and LTD.

Both offer limited liability, tax benefits, and credibility, but choosing the wrong one can affect your taxation, banking, platform access, and long-term growth.

In this blog, we’ll compare LLC (Limited Liability Company) in the U.S. with LTD (Private Limited Company) in the UK, and help you decide which one suits your business model best.

🏛️ What is an LLC?

• Location: United States

• Stands for: Limited Liability Company

• Tax Structure: Pass-through (profits taxed on personal income unless elected as a corporation)

• Best For: Freelancers, service providers, dropshippers, eCommerce businesses
  

✅ Key Features:

• Simple structure with minimal compliance

• No annual taxes in some states (e.g., New Mexico)

• Eligible for Stripe, PayPal, Amazon, Shopify

• EIN + U.S. bank account + business address

• Global entrepreneurs can register remotely
  

🏢 What is an LTD?

• Location: United Kingdom

• Stands for: Private Limited Company

• Tax Structure: Corporate tax (currently 25% in the UK)

• Best For: UK-based sellers, Amazon UK FBA, VAT-based businesses, and B2B companies
  

✅ Key Features:

• Recognized structure for UK and EU commerce

• Required to register for VAT (if turnover > £85,000)

• Must file annual accounts & tax returns

• Can open UK bank accounts and payment gateways

• Trusted by EU-based clients and marketplaces
  

⚖️ LLC vs LTD: Side-by-Side Comparison

Feature	LLC (U.S.)	LTD (UK)
Setup Time	2–7 days	1–2 days
Remote Formation	Yes (no visit needed)	Yes (via Companies House)
Taxation	Pass-through (0% if non-U.S.)	25% corporate tax
Annual Reports	Minimal (varies by state)	Required annually
Bank Accounts	Mercury, Relay, Payoneer	Wise, Payoneer, Tide, Monzo
Platforms Supported	Shopify, Stripe, Amazon USA	Amazon UK, eBay UK, Etsy UK
Best For	Global sellers, freelancers	UK/EU sellers, VAT-based B2B
VAT Registration	Optional (in US)	Required after £85k revenue

💼 When Should You Choose an LLC?

Choose a U.S. LLC if:

• You sell mainly to the U.S. market

• You want to access Stripe, PayPal, Shopify, Etsy USA

• You’re dropshipping or freelancing globally

• You want 0% tax legally as a non-resident (in most cases)

• You want minimal compliance and fast setup
  

🔑 Recommended States:

• New Mexico (0 annual tax & report)

• Wyoming (privacy-friendly)

• Delaware (for larger firms/investment)
  

🇬🇧 When Should You Choose an LTD?

Choose a UK LTD if:

• You sell on Amazon UK, Etsy UK, or eBay UK

• You need a VAT number for EU clients or dropshipping

• You plan to work with UK or EU-based suppliers

• You’re based in the UK or nearby and want legal recognition

• You want to pay yourself through dividends and salary
  

🌍 Can You Have Both?

Yes! Some of our advanced clients form both an LLC and LTD to:

• Tap into both U.S. and UK markets

• Optimize taxes in each region

• Keep separate business operations (e.g., one for dropshipping, one for freelancing)
  

At TechX Strategies, we help entrepreneurs choose the right structure based on your country, niche, and goals.

🧠 Final Verdict

Choose LLC if you want...	Choose LTD if you want...
Easy global access	UK/EU compliance & branding
Stripe & Shopify access	Amazon UK & VAT registration
Low tax (or 0%)	Dividend-salary mix
Fast setup with less paperwork	Long-term UK business growth

🤝 How TechX Can Help

Whether you're launching an Etsy shop or scaling a digital agency, TechX Strategies can guide you with:

✅ LLC/LTD registration ✅ EIN/VAT setup ✅ Bank account & payment gateway access ✅ Business consultation based on your region ✅ Complete eCommerce & marketing support

📩 Ready to launch your business the right way? Contact us for a free strategy session.