UK LTD, US LLC, or Estonian company: a comparison for selling in Europe
Priscila Alencar · 2026-10-07
Setup and maintenance costs
- UK LTD: The setup cost ranges from £12 to £100, depending on the registration company you use. Annual maintenance includes the accounts filing fee (around £13) and the company registration fee (if not exempt, around £50).
- US LLC: The setup cost varies from state to state, but generally ranges from $100 to $800. There may also be annual maintenance fees ranging from $50 to $800, depending on the state.
- Estonian company: The setup cost can be around €190 if done online. Maintenance includes annual fees of around €25, plus accounting costs, which can vary.
Banking and payment processors for each
- UK LTD: Banks like Revolut and Starling offer business accounts. Popular processors include PayPal and Stripe, which are widely accepted.
- US LLC: Banks like Chase and Bank of America are viable options. Processors like Square and PayPal are also common, but check the transaction fees.
- Estonian company: TransferWise (Wise) is a good option for business accounts. Processors like Stripe and PayPal are supported, but keep an eye on exchange fees.
Taxes and filing requirements
- UK LTD: The corporate tax rate is 19%. Filing annual accounts and a corporate tax return is mandatory.
- US LLC: Tax can range from 0% to 35%, depending on the state and profits. Filing requirements depend on the tax structure you choose (pass-through or corporate).
- Estonian company: The corporate tax rate is 20%, but only on distributed profits. You need to file monthly or quarterly returns, depending on sales volume.
VAT and oss
- UK LTD: VAT is 20%. If annual revenue exceeds £85,000, the company must register. The One Stop Shop (OSS) can be used to simplify VAT payments in other EU countries.
- US LLC: Most states don’t charge VAT, but instead charge sales tax, which varies. For sales in other states, OSS doesn’t apply.
- Estonian company: VAT is also 20%. Registration is mandatory if annual revenue exceeds €40,000. OSS applies to sales in other EU countries.
When a local company is required
- If you have a fixed establishment in an EU country, a local company is required.
- For sales that exceed the VAT threshold, local registration is required to avoid tax complications.
- If your sales volume is significant in a specific country, having a local company may be more advantageous to facilitate operations and compliance.
Which type of structure do you think is most viable for selling in Europe? Share some numbers!