The moment a UK company sets sights on the US, one question looms large: How do we legally and financially set up shop? While the opportunities are vast, the regulatory landscape can be a minefield. Here’s what every UK business should know before entering the American market.
Top Mistakes to Avoid — and What to Do Instead:
- Choosing the Wrong Entity Type ➤ Avoid: Copying someone else’s setup. ➤ Do: Choose between LLC, C-Corp, or foreign entity based on liability, tax goals, and funding strategy.
- Underestimating Banking Complexity ➤ US banks have strict compliance rules. Get your EIN, US address, and incorporation ready before applying.
- Misunderstanding Employment Laws ➤ Unlike the UK, employment law varies by state. Understand local expectations around benefits, at-will employment, and classification of workers.
- Ignoring State-Level Taxes ➤ Federal taxes are only part of the puzzle. States like California and New York can impose hefty obligations.
Pro Tip:
Hire an accountant and legal advisor with dual UK-US expertise. They’ll save you more in the long run than they cost upfront.
Final Thoughts:
Expanding to the US is an exciting move — but without the right legal and financial structure, you risk penalties, tax surprises, and lost investment. Do it right, and you’ll set yourself up for scalable, sustainable growth.
Author Bio:
Shah Karim and Mike Butler GPHR, SPHRi supports British companies in navigating the technical side of US expansion — from business consultancy to HR compliance. They believe growth should be ambitious, but never reckless.
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