As UK-US business specialists with over 15 years of experience helping British companies establish American operations, we’ve created this comprehensive guide to walk you through the entire process. From choosing the right business structure to opening bank accounts and fulfilling tax obligations, we’ll provide the practical roadmap you need for a successful US expansion.
Comparing US-UK Business Structures
When setting up a business in the USA from UK, understanding the differences between business structures is crucial. While some entities appear similar, there are significant legal and tax distinctions between US and UK business structures.
| US Structure | UK Equivalent | Liability Protection | Tax Treatment | Formation Complexity |
| Limited Liability Company (LLC) | Limited Company | Strong | Pass-through (flexible) | Moderate |
| C Corporation | Public Limited Company (PLC) | Strong | Double taxation | High |
| S Corporation | No direct equivalent | Strong | Pass-through | High (unavailable to non-residents) |
| Sole Proprietorship | Sole Trader | None | Personal income | Low |
Limited Liability Company (LLC)
The LLC is the most popular choice for UK entrepreneurs setting up a business in the USA. Similar to a UK limited company, an LLC provides personal liability protection while offering flexible tax options. Key benefits include:
- Pass-through taxation (profits pass directly to owners)
- Limited personal liability for business debts
- Fewer formalities than corporations (less paperwork)
- Flexibility in management structure
- No restrictions on the number of members
C Corporation
A C Corporation is comparable to a UK Public Limited Company (PLC) and offers advantages for businesses seeking significant investment or planning for an IPO. Consider this structure if you’re:
- Planning to raise venture capital funding
- Expecting to go public eventually
- Needing to issue multiple classes of stock
- Wanting to offer employee stock options
The main drawback is double taxation—profits are taxed at both the corporate and individual levels when distributed as dividends.
S Corporation
While popular among US residents, S Corporations are generally not available to non-US citizens or residents. They combine corporation benefits with pass-through taxation but have strict eligibility requirements.
Sole Proprietorship
Similar to being a sole trader in the UK, this is the simplest business structure but offers no liability protection. We rarely recommend this option for UK entrepreneurs setting up a business in the USA due to the significant personal liability exposure.
Need help choosing the right business structure?
Our US business formation specialists can analyse your specific situation and recommend the optimal structure for your expansion goals.
Choosing the Best US State for Your Business
When setting up a business in the USA from UK, your choice of state significantly impacts your tax obligations, legal protections, and operational costs. While you can incorporate in any state regardless of where you’ll physically operate, certain states offer distinct advantages for UK entrepreneurs.
| State | Corporate Tax Rate | Business Privacy | Court System | Annual Fees | Best For |
| Delaware | 8.7% | High | Specialized business court | $300+ | Investor-backed startups, larger corporations |
| Wyoming | 0% | Very High | Standard | $50-60 | Privacy-focused businesses, asset protection |
| Nevada | 0% | High | Business-friendly | $350+ | Privacy-focused businesses, no tax information sharing |
| New York | 7.25% | Low | Complex | $9+ | Finance, media, physical presence in NY |
| California | 8.84% | Low | Complex | $800 minimum | Tech startups, physical presence in CA |
Delaware: The Traditional Choice
Delaware remains the most popular state for setting up a business in the USA from UK, with over 67% of Fortune 500 companies incorporated there. Its advantages include:
- Well-established business law precedents
- Specialized Court of Chancery for business disputes
- No state corporate income tax for companies not operating in Delaware
- Strong privacy protections for business owners
- Streamlined incorporation process
- Attractive to investors and venture capitalists
- No sales tax
- Flexible corporate governance rules
Wyoming: The Rising Star
Wyoming has emerged as a compelling alternative for UK entrepreneurs setting up a business in the USA, offering:
- No state income tax, corporate tax, or franchise tax
- Low annual fees ($50-60 for most businesses)
- Strong asset protection laws
- Enhanced privacy (members/managers not listed in public records)
- No information sharing agreement with the IRS
Important Note: If your business will have physical operations in a specific state, you’ll need to register as a “foreign entity” in that state regardless of where you incorporate. This creates additional filing and tax obligations.
Step-by-Step Registration Process
The process of setting up a business in the USA from UK follows a logical sequence. Here’s your step-by-step roadmap:
- Choose your business name – Conduct a name availability search in your chosen state and verify trademark availability through the US Patent and Trademark Office database.
- Prepare and file formation documents – File Articles of Organization (for LLCs) or Articles of Incorporation (for corporations) with the Secretary of State in your chosen state.
- Appoint a Registered Agent – Every US business must have a Registered Agent with a physical address in the state of incorporation to receive legal documents and official correspondence.
- Create internal governance documents – Draft an Operating Agreement (for LLCs) or Bylaws (for corporations) to establish management structure and operational procedures.
- Apply for an Employer Identification Number (EIN) – This is your federal tax ID, required for tax filings, opening bank accounts, and hiring employees.
- Register for state and local taxes – Depending on your business activities and location, you may need to register for sales tax, payroll tax, and other state-specific taxes.
- Obtain necessary licenses and permits – Research and secure any industry-specific or location-based licenses required for your business operations.
Appointing a Registered Agent
A Registered Agent is a legal requirement when setting up a business in the USA from UK. This entity or individual must:
- Have a physical address (not a P.O. box) in the state of incorporation
- Be available during normal business hours to receive legal documents
- Forward important documents to you promptly
As a UK entrepreneur, you’ll typically need to use a professional Registered Agent service, as you won’t have a physical presence in the state. Annual fees range from $50-$300 depending on the provider and services included.
Filing Formation Documents
Formation documents are filed with the Secretary of State in your chosen state. These typically include:
For LLCs:
- Company name and address
- Business purpose
- Registered Agent information
- Management structure (member-managed or manager-managed)
- Member/manager names and addresses
For Corporations:
- Company name and address
- Business purpose
- Registered Agent information
- Number and type of authorized shares
- Director and officer information
Need help with your US business registration?
Our team specializes in helping UK entrepreneurs navigate the US business formation process. We handle all paperwork, registered agent services, and compliance requirements.
IRS Registration and Tax Obligations
Obtaining an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is essential when setting up a business in the USA from UK. This nine-digit number serves as your business’s tax ID and is required for:
- Filing federal and state tax returns
- Opening business bank accounts
- Hiring employees
- Establishing business credit
- Applying for business licenses
UK entrepreneurs can apply for an EIN by:
- Complete Form SS-4 – The “Application for Employer Identification Number” form requires basic information about your business and the “responsible party” (typically the owner or principal officer).
- Submit your application – International applicants can apply by phone (267-941-1099, not toll-free), fax, or mail. Online applications are only available if the responsible party has a US Social Security Number.
- Receive your EIN – Phone applications provide an EIN immediately, fax applications take about four business days, and mail applications can take up to four weeks.
Pro Tip: If you don’t have a US Social Security Number, you’ll need to apply for an Individual Taxpayer Identification Number (ITIN) or use a third-party service to obtain your EIN. Our team can handle this process for you.
Understanding US-UK Tax Obligations
When setting up a business in the USA from UK, you’ll need to navigate both countries’ tax systems:
US Federal Tax Obligations
- Income Tax – LLCs with one owner are taxed as sole proprietorships (Schedule C with personal return); multi-member LLCs file Form 1065; corporations file Form 1120
- Self-Employment Tax – LLC members typically pay self-employment tax (15.3%) on business income
- Estimated Tax Payments – Required quarterly if you expect to owe $1,000+ in taxes
- Employment Taxes – If you hire US employees, you’ll need to withhold income tax and pay Social Security and Medicare taxes
State and Local Taxes
- State Income Tax – Varies by state (some states have no income tax)
- Sales and Use Tax – Required if you sell taxable goods or services
- Property Tax – Applies to business property and real estate
- Franchise Tax – Annual fee for the privilege of doing business in certain states
UK Tax Considerations
- UK-US Tax Treaty – Prevents double taxation on the same income
- Foreign Tax Credit – UK tax relief for taxes paid in the US
- Controlled Foreign Company (CFC) Rules – May apply to UK owners of US companies
- Value Added Tax (VAT) – Consider implications for cross-border transactions
“The US-UK tax treaty is crucial for British entrepreneurs setting up businesses in America. It can significantly reduce your overall tax burden when structured correctly.”
Opening a US Business Bank Account
Opening a US business bank account is a critical step when setting up a business in the USA from UK. While traditionally challenging for non-residents, several options now exist for UK entrepreneurs.
Remote Account Opening Options
These digital-first solutions allow UK entrepreneurs to open US business accounts without traveling to the United States:
Mercury
A digital banking platform specifically designed for startups and small businesses, including those with foreign founders.
- No minimum balance requirements
- No monthly fees
- Free domestic and international wire transfers
- Virtual and physical debit cards
- API access for integration with accounting software
Wise Business
Formerly TransferWise, offers multi-currency accounts with US banking details for international businesses.
- Hold and manage 50+ currencies
- US account number and routing number
- Low-cost international transfers
- Business debit cards available
- Integrates with accounting software
Brex
Financial services platform offering business accounts for US-registered companies with foreign founders.
- No fees or minimum balances
- Built-in expense management
- Rewards program for business spending
- Integrates with popular accounting software
- Credit cards available for qualifying businesses
Traditional Bank Account Checklist
If you prefer a traditional US bank, most will require you to visit in person. Prepare these documents:
- EIN confirmation letter from the IRS
- Articles of Organization/Incorporation
- Operating Agreement/Bylaws
- Passport and secondary ID
- Proof of UK address
- US business address documentation
- Initial deposit (typically $100-1,000)
Important: Many US banks have tightened their requirements for non-resident account holders due to anti-money laundering regulations. Consider working with a business formation service that offers banking introductions to streamline the process.
Need help opening a US business bank account?
Our banking specialists can guide you through the process and introduce you to US banking partners that work with UK entrepreneurs.
UK Business Success Stories in the USA
Many UK businesses have successfully expanded to the United States. Here are some inspiring examples of companies that navigated the process of setting up a business in the USA from UK:
Fever-Tree
This premium mixer brand expanded to the US in 2015, setting up an American subsidiary with a small team in Brooklyn, NY.
Key Strategy: Formed a Delaware C Corporation to attract US investors and established distribution partnerships with existing beverage networks.
Result: Captured over 30% of the premium mixer market in the US, with American sales now representing over 20% of global revenue.
Brompton Bicycle
The iconic folding bike manufacturer established Brompton USA LLC in 2017, opening flagship stores in New York and San Francisco.
Key Strategy: Used an LLC structure for tax efficiency and focused on building a direct-to-consumer presence in major urban markets.
Result: US sales grew by 76% within three years of establishing their American business entity.
Deliveroo
The food delivery platform explored US expansion by first establishing a Delaware corporation for its technology operations.
Key Strategy: Started with a focused market entry in select cities rather than attempting nationwide coverage immediately.
Result: Secured significant US venture capital funding before ultimately deciding to focus on European and Asian markets.
Lessons from Successful UK-to-US Expansions
- Start with the right structure – Most successful UK businesses choose either a Delaware C Corporation (for investor appeal) or an LLC (for tax efficiency)
- Begin with a focused approach – Target specific regions or markets rather than attempting nationwide coverage immediately
- Understand cultural differences – Adapt marketing, sales approaches, and even product offerings to American consumer preferences
- Leverage local expertise – Hire American talent or partner with US-based consultants who understand the market
- Plan for scale – Establish systems and processes that can grow with your business as you expand across the US
“The US market offered us tremendous growth potential, but we had to approach it differently than our UK expansion. Working with local experts who understood both markets was crucial to our success.”
Visa Options for UK Entrepreneurs
While you can set up a business in the USA from UK without being physically present, managing operations often requires travel or relocation. Here are the most relevant visa options for UK entrepreneurs:
| Visa Type | Best For | Key Requirements | Duration | Advantages | Limitations |
| E-2 Treaty Investor | UK entrepreneurs investing in a US business | Substantial investment (typically $100,000+), majority UK ownership | 2-5 years, renewable indefinitely | Relatively quick processing, spouse can work | No direct path to permanent residency |
| L-1A Intracompany Transfer | Executives/managers transferring from UK company to US subsidiary | 1+ year employment with UK company in executive/managerial role | Up to 7 years | Path to green card, spouse can work | Requires established UK business for at least 1 year |
| EB-5 Immigrant Investor | Entrepreneurs seeking permanent residency | $800,000-$1,050,000 investment, create 10+ jobs | Permanent (green card) | Permanent residency for investor and family | High investment threshold, long processing times |
| B-1 Business Visitor | Short business trips | Temporary business activities (meetings, conferences) | Up to 6 months | Easy to obtain for UK citizens | Cannot work or receive US salary |
E-2 Treaty Investor Visa
The E-2 visa is the most popular option for UK entrepreneurs setting up a business in the USA. Key considerations include:
Requirements:
- Substantial investment (typically $100,000+)
- Business must be active and operational
- Must be more than a marginal enterprise
- Investor must develop and direct the business
- Majority ownership by UK citizens
Application Process:
- Establish your US business entity
- Make the qualifying investment
- Prepare a comprehensive business plan
- Complete Form DS-160
- Submit supporting documentation
- Attend visa interview at US Embassy in London
Pro Tip: The E-2 visa application requires extensive documentation of your investment and business plan. Working with an immigration attorney experienced in E-2 visas can significantly increase your approval chances.
Need US Immigration Assistance?
Our network of immigration attorneys specializes in business visas for UK entrepreneurs expanding to the United States.
Virtual Office Solutions
When setting up a business in the USA from UK, a virtual office provides a professional US presence without the cost of physical premises. These services are particularly valuable during your initial market entry phase.
Key Virtual Office Components
- US Business Address – A physical address in your target market (not a P.O. box) for business registration, marketing materials, and client correspondence
- Mail Handling – Receipt, scanning, and forwarding of business mail and packages
- Phone Services – Local US phone number with professional answering services
- Meeting Spaces – On-demand access to conference rooms and day offices when you visit the US
- Business Support – Administrative services, call handling, and sometimes local representation
Recommended Virtual Office Providers
Regus/IWG
Global provider with 3,000+ locations across the US, offering comprehensive virtual office packages.
- Business address in prime locations
- Mail handling and forwarding
- Telephone answering services
- Access to business lounges worldwide
- Meeting room credits included in some packages
Starting at: $99/month
Davinci Virtual Office
Specialized virtual office provider with 2,000+ locations in the US, focused on small businesses.
- Premium business addresses
- Mail receipt and forwarding
- Live receptionist services
- Business support services
- Conference room access at discounted rates
Starting at: $50/month
Earth Class Mail
Digital mailbox service specializing in mail scanning and processing for remote businesses.
- Street addresses in major US cities
- Mail scanning and digital delivery
- Check deposit services
- Unlimited recipients
- Integration with cloud storage
Starting at: $69/month
Important: When setting up a business in the USA from UK, ensure your virtual office provider can serve as your Registered Agent or coordinate with your Registered Agent service. This ensures all legal documents are properly received and processed.
Navigating US-UK Business Cultural Differences
Understanding cultural differences is crucial when setting up a business in the USA from UK. Despite sharing a language, significant differences in business practices can impact your success.
UK Business Culture
- More reserved and indirect communication
- Emphasis on understatement and modesty
- Preference for subtle humor and irony
- Greater formality in business relationships
- Longer relationship-building phase
- More holiday/vacation time expected
- Less frequent job-hopping
US Business Culture
- Direct and explicit communication
- Emphasis on self-promotion and achievement
- Preference for straightforward messaging
- Faster transition to first-name basis
- Quicker to make business decisions
- Limited vacation time (typically 10-15 days)
- More frequent job changes and mobility
Negotiation Style Differences
Understanding negotiation differences is particularly important when setting up a business in the USA from UK:
| Aspect | UK Approach | US Approach | Adaptation Strategy |
| Communication Style | Indirect, subtle, diplomatic | Direct, explicit, straightforward | Be more direct and clear in US negotiations; state expectations explicitly |
| Decision Making | Consensus-oriented, methodical | Faster, often more hierarchical | Be prepared for quicker decisions and have authority to commit |
| Risk Tolerance | More risk-averse, cautious | Higher risk tolerance, entrepreneurial | Emphasize upside potential and growth opportunities |
| Contract Focus | Relationship-based, flexible | Contract-based, detailed | Expect more detailed contracts and legal involvement |
“Americans say exactly what they mean—if they say something is ‘interesting,’ they genuinely find it interesting, not problematic as a Brit might imply. This directness extends to negotiations, where Americans typically state their position clearly rather than hinting.”
Frequently Asked Questions
Can I set up a US business without visiting the United States?
Yes, it’s entirely possible to set up a business in the USA from UK without visiting. You can:
- Form your business entity through a registered agent service
- Obtain your EIN through a third-party service
- Open a business bank account with certain digital providers
- Establish a virtual office for your US presence
However, while remote setup is possible, visiting the US can be beneficial for networking, understanding the market, and establishing banking relationships with traditional institutions.
Do I need a US visa to own a business in America?
No, you don’t need a visa to own a US business. Non-US citizens can own American businesses without ever visiting the country. However, if you plan to work in or manage your business from within the US, you’ll need an appropriate work visa such as an E-2 (Treaty Investor) or L-1 (Intracompany Transferee) visa.
How much does it cost to set up a business in the USA from UK?
The basic costs of setting up a business in the USA from UK include:
| Expense | Typical Cost Range | ||||||||||||||||||||||||||||||||||
| Business Formation Filing | -500 (varies by state) | ||||||||||||||||||||||||||||||||||
| Registered Agent Service | 0-300 per year | ||||||||||||||||||||||||||||||||||
| EIN Application | Free (DIY) or 0-300 (service) | ||||||||||||||||||||||||||||||||||
| Virtual Office | -300 per month | ||||||||||||||||||||||||||||||||||
| Business Banking |
Frequently Asked QuestionsCan I set up a US business without visiting the United States?Yes, it’s entirely possible to set up a business in the USA from UK without visiting. You can:
However, while remote setup is possible, visiting the US can be beneficial for networking, understanding the market, and establishing banking relationships with traditional institutions. Do I need a US visa to own a business in America?No, you don’t need a visa to own a US business. Non-US citizens can own American businesses without ever visiting the country. However, if you plan to work in or manage your business from within the US, you’ll need an appropriate work visa such as an E-2 (Treaty Investor) or L-1 (Intracompany Transferee) visa. How much does it cost to set up a business in the USA from UK?The basic costs of setting up a business in the USA from UK include:
Additional costs may include business licenses, permits, insurance, and visa applications if you plan to relocate. A comprehensive setup typically ranges from $1,500-5,000 excluding travel expenses. How are UK companies taxed in the US?UK companies operating in the US through a subsidiary are subject to US federal, state, and sometimes local taxes on income generated in the US. The US-UK tax treaty helps prevent double taxation. Key considerations include:
We strongly recommend working with a tax professional experienced in US-UK cross-border taxation to optimize your structure. What’s the difference between a C Corporation and an LLC for UK entrepreneurs?The main differences between C Corporations and LLCs for UK entrepreneurs setting up a business in the USA are:
For most UK entrepreneurs, LLCs are preferable for small businesses focused on profitability, while C Corporations are better for startups seeking significant investment or planning for an IPO. -50 per month |
||||||||||||||||||||||||||||||||||
| Initial Legal Consultation | 0-500 | ||||||||||||||||||||||||||||||||||
| Initial Tax Consultation | 0-400 |
Additional costs may include business licenses, permits, insurance, and visa applications if you plan to relocate. A comprehensive setup typically ranges from
Frequently Asked Questions
Can I set up a US business without visiting the United States?
Yes, it’s entirely possible to set up a business in the USA from UK without visiting. You can:
- Form your business entity through a registered agent service
- Obtain your EIN through a third-party service
- Open a business bank account with certain digital providers
- Establish a virtual office for your US presence
However, while remote setup is possible, visiting the US can be beneficial for networking, understanding the market, and establishing banking relationships with traditional institutions.
Do I need a US visa to own a business in America?
No, you don’t need a visa to own a US business. Non-US citizens can own American businesses without ever visiting the country. However, if you plan to work in or manage your business from within the US, you’ll need an appropriate work visa such as an E-2 (Treaty Investor) or L-1 (Intracompany Transferee) visa.
How much does it cost to set up a business in the USA from UK?
The basic costs of setting up a business in the USA from UK include:
| Expense | Typical Cost Range |
| Business Formation Filing | $50-500 (varies by state) |
| Registered Agent Service | $100-300 per year |
| EIN Application | Free (DIY) or $100-300 (service) |
| Virtual Office | $50-300 per month |
| Business Banking | $0-50 per month |
| Initial Legal Consultation | $250-500 |
| Initial Tax Consultation | $200-400 |
Additional costs may include business licenses, permits, insurance, and visa applications if you plan to relocate. A comprehensive setup typically ranges from $1,500-5,000 excluding travel expenses.
How are UK companies taxed in the US?
UK companies operating in the US through a subsidiary are subject to US federal, state, and sometimes local taxes on income generated in the US. The US-UK tax treaty helps prevent double taxation. Key considerations include:
- US subsidiaries pay federal corporate tax (currently 21%)
- State corporate taxes vary (0-12%)
- Sales tax applies in most states for product sales
- Profits repatriated to the UK parent may be subject to withholding tax (typically reduced by the tax treaty)
- UK parent companies must report worldwide income but can claim foreign tax credits for US taxes paid
We strongly recommend working with a tax professional experienced in US-UK cross-border taxation to optimize your structure.
What’s the difference between a C Corporation and an LLC for UK entrepreneurs?
The main differences between C Corporations and LLCs for UK entrepreneurs setting up a business in the USA are:
| Feature | C Corporation | LLC |
| Taxation | Double taxation (corporate + dividend) | Pass-through taxation (single layer) |
| Investor Appeal | Preferred by VCs and angel investors | Less attractive to institutional investors |
| Ownership Flexibility | Can issue multiple classes of stock | Flexible membership interests |
| Compliance Burden | Higher (board meetings, minutes, etc.) | Lower (fewer formalities) |
| International Tax Treatment | Clearer under tax treaties | Can be complex for foreign owners |
For most UK entrepreneurs, LLCs are preferable for small businesses focused on profitability, while C Corporations are better for startups seeking significant investment or planning for an IPO.
,500-5,000 excluding travel expenses.
How are UK companies taxed in the US?
UK companies operating in the US through a subsidiary are subject to US federal, state, and sometimes local taxes on income generated in the US. The US-UK tax treaty helps prevent double taxation. Key considerations include:
- US subsidiaries pay federal corporate tax (currently 21%)
- State corporate taxes vary (0-12%)
- Sales tax applies in most states for product sales
- Profits repatriated to the UK parent may be subject to withholding tax (typically reduced by the tax treaty)
- UK parent companies must report worldwide income but can claim foreign tax credits for US taxes paid
We strongly recommend working with a tax professional experienced in US-UK cross-border taxation to optimize your structure.
What’s the difference between a C Corporation and an LLC for UK entrepreneurs?
The main differences between C Corporations and LLCs for UK entrepreneurs setting up a business in the USA are:
| Feature | C Corporation | LLC |
| Taxation | Double taxation (corporate + dividend) | Pass-through taxation (single layer) |
| Investor Appeal | Preferred by VCs and angel investors | Less attractive to institutional investors |
| Ownership Flexibility | Can issue multiple classes of stock | Flexible membership interests |
| Compliance Burden | Higher (board meetings, minutes, etc.) | Lower (fewer formalities) |
| International Tax Treatment | Clearer under tax treaties | Can be complex for foreign owners |
For most UK entrepreneurs, LLCs are preferable for small businesses focused on profitability, while C Corporations are better for startups seeking significant investment or planning for an IPO.
Ready to Expand Your UK Business to the USA?
Setting up a business in the USA from UK offers tremendous growth opportunities, but navigating the complex legal, tax, and operational landscape requires careful planning and expert guidance. By following the roadmap outlined in this guide, you’ll be well-positioned to establish a successful American presence for your UK business.
Remember that each business has unique needs and circumstances. While this guide provides a comprehensive overview, we recommend consulting with specialists in international business formation, taxation, and immigration to tailor your approach to your specific situation.
