Business expansion into the US: The land of opportunity

The United States continues to attract British businesses and entrepreneurs looking to explore the country’s vast potential.

Expanding into the US means being bold, embracing differences and using a trusted advisor that understands you and your business. That’s where we come in.

Companies pushed to look for opportunities overseas by domestic market limitations and constraints, customers requiring a global presence and a need for geographic competitiveness, the US offers much, including access to private capital and a large labour force.

Boasting the world’s largest GDP (gross domestic product) and a population of over 330 million, the US market for goods, services and skilled workers presents opportunities unlike any other.

Driven by optimism, entrepreneurialism and innovation; the US has been resilient to medium-to-long term economic turbulence, adaptable to global change and at the cutting edge of technological advancements.

The attraction for British businesses also lends itself to similarities in domestic economic drivers, such as stability in the banking system and fiscal policies, access to private investors and private capital and a significant consumer base.

With so much going for it, the US market is hugely competitive. New entrants should form a well-considered plan before making any move. Being prepared for the challenges that lie ahead means that strategic planning starts months or years before expansion and continues throughout the business journey.

Choosing the most appropriate business structure for growth and investment at the outset is key, due to tax obligations, legal liability protection and future investment prospects.

A funding strategy is key

From early-stage startups to more mature businesses, the opportunity to expand into the US may present itself at any stage. Startups may very early on through product or service development make the US their primary market, establishing a management presence there, raising capital from US investors and fine-tuning their proposition for the American market.

More mature businesses, following successful investment rounds in the UK, and with established domestic products or services, may decide to expand into the US market due to customer demand or access to the skilled labour market in specific sectors and industries.

With resources and time finite, businesses do not want to be caught simultaneously developing a product or service for each respective market whilst raising capital domestically and abroad.

Regulation, location and cyber consideration

Preparedness is key to success. Landing in the US, UK businesses are presented with a vast landscape of laws, regulations and compliance requirements, many of them unfamiliar and nationwide or varying from state to state, such as local licences and trading permits required beyond that of the state in which formation or incorporation has taken place.

Comparably to the UK, the US labour market can more expensive, depending on staff role, seniority, industry, and city, making geographical location and state(s) selection a key consideration for establishing a staff presence. Businesses should consider their core operating structure, some of which can be outsourced, particularly finance, legal and IT.

Staff fundamentally linked to the business’s core operations, such as the sales and marketing function and the management team, must be carefully balanced.

Consideration should also be given to cyber security, particular for businesses that hold customer details and other sensitive data, and the jurisdiction in which that data is stored and accessed, whether domestically or aboard.

Advice that scales with your ambition

Taking the appropriate professional advice is vital if you are seeking to establish a compliant trading and operational presence in the US.

If you’re considering expansion into the US, Evelyn can help. Our professional services colleagues, and through our international CLA Global network, have a depth of knowledge that can scale to support your business both domestically and aboard. We’d welcome you reaching out to discuss how we can help. You can email me – Rob.Levett@evelyn.com.