Expanding your UK startup to the U.S. can be one of the biggest growth opportunities—but it’s also one of the most complex moves a business can make.
With different legal structures, hiring challenges, tax rules, and market expectations, many UK founders struggle to launch successfully and avoid common pitfalls.
🚀 This guide walks you through every step to ensure your U.S. launch is smooth, strategic, and profitable.
Step 1: Define Your U.S. Expansion Strategy
Before you take action, define your goals and market entry strategy.
📌 Key questions to answer:
✅ Why are you expanding? (Revenue growth, fundraising, new customers?)
✅ Where in the U.S. will you launch? (Which state/city best suits your industry?)
✅ How will you operate? (Remote team, office, hybrid model?)
📌 Popular U.S. Cities for UK Startups:
🏢 New York – Ideal for finance, media, and B2B tech.
🌉 San Francisco – Best for VC-backed startups and SaaS companies.
🌆 Austin, Texas – Lower costs, booming tech and creative industries.
🏖 Miami – Growing startup hub for fintech and e-commerce.
👉 Pro Tip: Focus on one or two key U.S. markets before expanding further.
Step 2: Choose the Right Business Structure (LLC vs. C-Corp)
You’ll need to incorporate your business before legally operating in the U.S.
📌 Best Business Structures for UK Startups:
| Business Type | Recommended Structure | Why? |
|---|---|---|
| Venture-Backed Startups | Delaware C-Corp | Preferred by U.S. investors, easy to raise capital |
| Small Business / Consultancy | LLC | Simple tax structure, fewer compliance requirements |
| E-Commerce / SaaS | C-Corp (Delaware) | Helps with payments, hiring, and funding |
💡 Estimated Incorporation Costs: $1,000 – $5,000 upfront, plus annual compliance fees.
👉 Pro Tip: If you plan to raise U.S. investment, set up a Delaware C-Corp.
Step 3: Set Up U.S. Banking & Payments
Once incorporated, you’ll need a U.S. bank account and payment processor.
📌 Banking & Payment Options:
✅ Mercury / Brex – Best fintech banks for startups (easy remote setup).
✅ Chase / Bank of America – Traditional banks (may require an in-person visit).
✅ Stripe / PayPal / Square – Payment processing options for U.S. customers.
💡 Estimated Cost: $500 – $1,000 setup, plus transaction fees.
👉 Pro Tip: Use a fintech bank (Mercury, Brex) for fast, remote-friendly account setup.
Step 4: Register for U.S. Taxes & Compliance
Unlike the UK, the U.S. has federal, state, and local tax rules that can get complicated.
📌 Tax Considerations for UK Startups in the U.S.:
✅ Federal Corporate Tax: 21% (for C-Corps).
✅ State Taxes: Varies by location (Delaware has no state corporate tax).
✅ Sales Tax: Unlike VAT, sales tax is applied per state and varies (0-10%).
✅ Payroll Tax: If hiring employees, expect 7.65% payroll tax plus state-specific taxes.
💡 Estimated Annual Tax Costs: $5,000 – $20,000, depending on revenue and payroll.
👉 Pro Tip: Work with a U.S. tax expert to avoid penalties and double taxation.
Step 5: Hire Your First U.S. Employees
The U.S. job market is competitive and expensive, so hiring the right way is critical.
📌 U.S. Hiring Options for UK Startups:
✅ Employer of Record (EOR) – Services like Deel, Rippling, or Remote handle payroll/taxes without needing a U.S. entity.
✅ Full-Time Employees (W-2) – Requires setting up payroll & tax withholding.
✅ Contractors (1099 Workers) – Easy to hire but must be classified correctly.
📌 U.S. Salary Expectations (Compared to UK):
| Role | UK Salary (£) | U.S. Salary ($) |
|---|---|---|
| Software Engineer | £60K – £80K | $120K – $180K |
| Sales Executive | £50K – £90K | $80K – $150K + commission |
| Marketing Manager | £50K – £70K | $90K – $140K |
💡 Estimated Hiring Costs: 30% – 50% higher than UK salaries, plus benefits.
👉 Pro Tip: Start with an EOR or contractors before committing to full-time U.S. hires.
Step 6: Build a U.S. Sales & Marketing Strategy
Your UK marketing approach may not work in the U.S.—the market is bigger, more competitive, and more direct.
📌 What Works Best for U.S. Sales?
✅ Cold Outreach (LinkedIn, Email, Calls) – Americans expect direct sales.
✅ Paid Ads (Google, LinkedIn, Facebook) – More competitive but essential for scale.
✅ Industry Events & Networking – Referrals and personal relationships drive deals.
✅ U.S.-Specific Website & Messaging – Adapt branding for the American audience.
💡 Estimated Marketing Costs: $5,000 – $20,000 per month for serious U.S. growth.
👉 Pro Tip: The U.S. sales cycle is faster—be prepared to pitch and close deals quickly.
Step 7: Set Up an Office or Virtual Presence
Many UK startups start remotely, but having a U.S. address builds credibility.
📌 Office Space Options:
🏢 Coworking (WeWork, Industrious): $300 – $800/month per person.
📍 Virtual Office (Opus, Alliance Virtual Offices): $50 – $200/month.
🏬 Dedicated Office Lease (NYC, SF, Miami): $3,000 – $10,000/month.
💡 Estimated Office Costs: $500 – $5,000/month, depending on size and location.
👉 Pro Tip: Start with a virtual office & coworking space before committing to a lease.
Final Thoughts: How to Successfully Launch Your UK Startup in the U.S.
Expanding to the U.S. can be a game-changer, but it requires strategic planning and execution.
📌 Key Takeaways:
✅ Incorporate properly – Delaware C-Corp for startups, LLC for small businesses.
✅ Plan for higher costs – Salaries, taxes, and operations are more expensive than in the UK.
✅ Adapt your sales & marketing – Direct outreach, networking, and U.S.-specific branding work best.
✅ Use EORs or contractors – A cost-effective way to test hiring before committing to payroll.
✅ Start small, then scale – Virtual offices and lean teams reduce upfront risk.
💡 Need expert help with your U.S. expansion? Canyonstone Partners specializes in helping UK startups launch, hire, and grow in the U.S.—seamlessly and successfully.