How the quiz weighs your answers
The quiz gives each answer points toward a US LLC or a UK private limited company (Ltd). When one side is clearly ahead, it suggests that structure. When the scores are close, it tells you either can work and shows what should decide it. Some answers also add a caveat, which is a reason to check the rules or ask a professional before you form anything.
1. Where you live
This counts most. If you live in the UK, a UK company matches your tax home, and a US LLC would raise UK tax questions that need advice. If you are a US citizen, green card holder or US resident, a US LLC fits the tax system you already file in, but this quiz is written for founders outside the US, so speak to a US tax professional. If you live somewhere else, both are possible and you would run the company remotely. Your home country's tax rules still apply to you, and some countries, India among them, have rules about owning a company abroad.
2. Where your customers are
Customers mostly in the US point to a US company, customers mostly in the UK to a UK company. Customers everywhere do not favor either. If most customers are in your home country, a local company may be simpler than both.
3. Payments and banking
Stripe lists which countries it serves on its own website. It accepts US and UK companies, subject to review, and it does not list Pakistan or Bangladesh for local businesses, which is why many founders there use a US LLC. A US business bank account such as Mercury needs a US company, and Mercury publishes a list of prohibited countries that includes Pakistan, Nigeria and Bangladesh. A UK business bank account needs a UK company. No provider approval is ever guaranteed.
4. Amazon
Selling on Amazon.com points to a US company, and on Amazon.co.uk to a UK company. A UK company that is run from abroad may be a non-established taxable person for VAT, which means it must register for VAT from its first UK sale, with no £90,000 threshold.
5. Investors
Venture capital investors often expect a Delaware C corporation rather than an LLC or a UK company. If you plan to raise from them, the quiz points you to a C corporation. Converting later is possible but costs time and money.
6. Yearly paperwork
A single-member US LLC owned by a non-US person usually files Form 5472 with a pro forma Form 1120 and one state report or tax each year. When the LLC has no US trade or business, there is often no US income tax to pay, but that depends on your facts, and the $25,000 penalty for a missed Form 5472 applies even in a year with no income. A UK company files annual accounts, a CT600 tax return and a confirmation statement, and pays corporation tax at 19% on profits up to £50,000 and up to 25% above that. That is more paperwork, but it is a fully taxed structure that UK banks and customers know well.
7. Staff, offices and stock
People, premises or stock in a country tie your business to it. In the US that can create a US trade or business, which brings US income tax filings. In the UK it points to a UK company.
What the result is, and what it is not
The result is a starting point based on general rules, not legal or tax advice. It cannot see your full tax position, your home country's rules or your plans. Check the costs with the LLC state fee comparison, and speak to a licensed professional if the choice depends on tax.