Why Expand to the U.S.?
For UK businesses, the U.S. represents one of the biggest growth opportunities in the world. With a market over six times the size of the UK, greater access to funding, and a culture that embraces innovation, it’s no surprise that many British startups and scale-ups are making the leap across the Atlantic.
But expanding to the U.S. isn’t as simple as opening a new office. From legal requirements to hiring, banking, and sales strategy, there’s a lot to consider. In this guide, we’ll walk you through everything you need to know about successfully launching your UK business in the U.S.
Step 1: Choosing the Right U.S. Business Structure
Before you can begin operating in the U.S., you’ll need to legally incorporate your business. The most common choices are:
• LLC (Limited Liability Company) – Great for small businesses and those not planning to raise U.S. venture capital.
• C-Corp (Delaware Corporation) – Best for startups seeking investment, as it’s the preferred structure for U.S. investors.
• Foreign Entity Registration – If you already have a UK company and want to open a U.S. branch without forming a new entity.
👉 Pro Tip: Most UK startups expanding to the U.S. go for a Delaware C-Corp, as it’s the most investor-friendly structure and simplifies fundraising.
Step 2: Opening a U.S. Bank Account & Setting Up Payments
Once incorporated, you’ll need a U.S. business bank account to handle transactions, payroll, and expenses. However, UK business owners often struggle to open accounts remotely due to U.S. banking regulations.
💳 Options for UK founders:
1. Traditional U.S. Banks (Chase, Bank of America, Wells Fargo) – Require in-person setup, but offer credibility and full banking services.
2. Fintech Banks (Mercury, Brex, Relay) – Offer remote account setup, easy transfers, and great startup perks.
3. Stripe Atlas – A fast way to set up a U.S. business and bank account online if you incorporate in Delaware.
👉 Pro Tip: Don’t mix UK and U.S. banking. Keeping U.S. transactions in a U.S. account helps with tax compliance and makes financial operations much smoother.
Step 3: Understanding U.S. Tax & Compliance
Unlike the UK, the U.S. has federal, state, and even city-level taxes, which can get complicated. Some key things to consider:
✅ Federal Corporate Tax – 21% (but deductions apply).
✅ State Taxes – Vary by location (e.g., Delaware has no corporate income tax).
✅ Sales Tax – Unlike VAT, sales tax is applied at the state level, not nationwide.
✅ Employer Payroll Tax – If you hire U.S. employees, expect 7.65% in payroll taxes on top of salaries.
👉 Pro Tip: Work with a U.S.-based accountant to stay compliant and avoid unnecessary tax liabilities.
Step 4: Hiring & Payroll – How to Build Your U.S. Team
The U.S. hiring process is very different from the UK. There are fewer labor protections, salaries are higher, and employee benefits (like healthcare) are often expected.
👔 Options for hiring in the U.S.:
1. Direct Employment (W-2 Employees) – Full-time staff that you pay via payroll (requires a U.S. entity).
2. Contractors (1099 Workers) – Flexible, lower risk, but misclassification can lead to fines.
3. Employer of Record (EOR) – A service that lets you hire U.S. employees without setting up a U.S. entity.
💰 U.S. Salary Expectations (Compared to UK)
• Software Engineer: $120K–$180K (vs. £60K–£80K in the UK).
• Sales Executive: $80K–$150K + commission (vs. £50K–£90K in the UK).
• Marketing Manager: $90K–$140K (vs. £50K–£70K in the UK).
👉 Pro Tip: Use a PEO (Professional Employer Organization) like Deel or Rippling to hire faster without setting up U.S. payroll infrastructure.
Step 5: Adapting Your Sales & Marketing for the U.S. Market
Many UK startups fail in the U.S. because they don’t adjust their sales and marketing approach.
🇬🇧 Key differences between UK and U.S. business culture: 🇺🇸
✅ U.S. sales cycles are faster – Buyers expect quick decision-making.
✅ Networking is critical – Referrals and personal connections drive sales.
✅ Cold outreach works better – Direct sales tactics (emails, calls) are more accepted in the U.S. than in the UK.
🔹 Best U.S. Sales & Growth Strategies:
• Use LinkedIn Sales Navigator & cold outreach to book meetings.
• Attend U.S. startup & industry events to build relationships.
• Invest in performance marketing (Google, Facebook, LinkedIn Ads) – U.S. buyers expect aggressive paid ads.
👉 Pro Tip: The U.S. market is highly competitive, so position your brand clearly and be direct in your messaging.
Step 6: Finding Office Space & Handling Logistics
While many businesses start remotely, having a U.S. address adds credibility.
🏢 Best U.S. Office Space Options:
1. Coworking Spaces (WeWork, Industrious, Regus) – Great for small teams & networking.
2. Virtual Office Addresses (Opus, Alliance Virtual Offices) – For official mail handling & business presence.
3. Private Office Leases – Best for companies with a larger U.S. team.
🚀 Logistics to Consider:
• Business Insurance – U.S. businesses need liability coverage.
• HR & Benefits Setup – Health insurance is often expected in full-time offers.
• Legal Contracts – U.S. contracts are more complex and state-specific.
👉 Pro Tip: Start with a virtual office + coworking membership before committing to a lease.
Final Thoughts: Making Your U.S. Expansion a Success
Expanding to the U.S. isn’t easy, but with the right strategy, it can be one of the most profitable moves for your business.
📌 Key Takeaways:
✅ Start with the right structure – A Delaware C-Corp is best for startups.
✅ Set up banking & tax compliance early – Avoid financial headaches.
✅ Hire smartly – Use a PEO or contractors before setting up payroll.
✅ Adapt your sales approach – The U.S. market is fast-paced and competitive.
✅ Get expert guidance – Work with experienced expansion partners to avoid costly mistakes.
💡 Need expert help launching in the U.S.? Canyonstone Partners specializes in helping UK businesses scale across the Atlantic—seamlessly and successfully.