United States (LLC) vs Hong Kong
United States (LLC) has the lower headline tax (0%), and United States (LLC) is cheaper to set up (from $300). Only Hong Kong can give you a residence visa through your company.Which is better depends on where you live and where your customers are.
| USUnited States (LLC) | HKHong Kong | |
|---|---|---|
| Entity | Single-member LLC (foreign-owned, disregarded entity) | Private company limited by shares (Ltd) |
| Corporate tax | 0% federal on non-US-source income (pass-through) | 8.25% on first HK$2m, 16.5% above — territorial |
| Setup cost from | $300 | $1,200 |
| Setup time | 1–5 business days | 1–5 business days |
| Minimum capital | None | HK$1 |
| Local director | Not required | Not required |
| Remote formation | Yes | Yes |
| Residency visa | No | Possible |
| Banking | Easy | Difficult |
| Best for | Online businesses, SaaS, e-commerce and freelancers selling worldwide who want USD banking and Stripe. | Trading, sourcing and e-commerce businesses dealing with China and Asia that want a low-tax, territorial system. |
Choose United States (LLC) if
Online businesses, SaaS, e-commerce and freelancers selling worldwide who want USD banking and Stripe.
- Formed 100% online in a few days — no US visit required
- Easy fintech banking (Mercury, Relay, Wise) and Stripe/PayPal access
- No BOI report needed for US-formed LLCs since 2025/26
Choose Hong Kong if
Trading, sourcing and e-commerce businesses dealing with China and Asia that want a low-tax, territorial system.
- Low two-tier profits tax and a territorial system — offshore profits can be exempt
- No local director needed, 100% foreign ownership
- Fast online incorporation, often within a day