US tax implications for starting an LTD in the UK

Apologies if this topic has been handled in this forum before - I've looked for it but haven't been able to find it.

I'm being advised by my UK accountant that I'd be foolish not to set up an LTD here (what we'd call an LLC in the US from what I understand). I could have saved thousands of pounds on this year's tax bill.

I thought I'd read a year ago when I considered this that forming a company would have bad ramifications on my US taxes.

Does anyone know if this is true? If there aren't any implications for my US taxes then I'm anxious to get this LTD set up ...!

-- Useful background info --

I am:

a US citizen living in the UK since May 2006
on a spousal visa with right to live and work (my wife's Italian)
a self-employed video director
current on my taxes in the UK, but they're pretty high

Any advice will be greatly appreciated --

Thanks,
Jason

Your UK accountant may be right.  A UK company can save money in the UK & add to credibility.

You would have a Controlled Foreign Company though so would have to file annual Forms 5471 - and you would likely owe US tax on dividend income.

So in summary your accounting costs would increase, your US tax might increase but your UK tax might go down.  Ask your accountant for estimates of these 3 variables so you can decide if this pays overall globally.