Many UK companies look to expand or move to the United States because it offers one of the largest markets in the world and deep access to capital. At the end of the first quarter of 2025, 91 UK-headquartered companies were listed on US stock exchanges, with a combined market value of around $2.2 trillion. This shows how attractive the US can be for ambitious companies seeking growth and investment.
The US also remains the top destination for UK firms considering international expansion, with around 35 % of companies identifying it as a key market over the next year, reflecting strong trade ties across the Atlantic.
Expanding to the US can open new revenue streams, offer access to a broader customer base and sometimes bring tax or regulatory advantages. But making the move involves careful planning across several areas.
Deciding the Right Legal Structure When Moving To The US
The first major step is deciding how to operate in the US. A UK company has several options, but the most common is to set up a new US legal entity that is separate from the UK parent. This could be a subsidiary company registered under US law.
A subsidiary often takes the form of a limited liability company (LLC) or a corporation. An LLC is flexible and popular for smaller operations because profits can pass through to owners without corporate tax at the first level. A corporation might suit a larger business or one planning to raise capital from investors.
Choosing the right structure is important because it affects tax treatment, liability, reporting obligations and how easy it is to hire staff or open bank accounts.
Registering a Company in the US
Once the structure is chosen, the business must formally register in a US state. Companies often pick states like Delaware or New York because they have well-understood corporate laws and are friendly to businesses.
The first formal step is filing formation documents with the state, such as Articles of Organisation (for an LLC) or Articles of Incorporation (for a corporation). A registered agent must also be appointed. This is a person or service in the chosen state that accepts official mail on behalf of the company.
The US business will then apply for a Federal Employer Identification Number (EIN) from the Internal Revenue Service. The EIN is essential because it functions like a tax ID and is required to open a US business bank account, pay tax and hire staff.
Legal and Immigration Rules When Moving a Business To The US
If the business owner or directors plan to move to the US to run the company, they will need the correct US visa. Common options include the L-1 visa for intracompany transfers and the E-2 investor visa if the owner is investing a significant amount of capital. Visa applications involve detailed documentation about the company, investment and business plan.
Even if no one is moving personally, the company must comply with US employment law, workplace safety rules and anti-discrimination standards if it hires US employees or contracts services.
Taxes and Financial Implications of a Move To The US
US tax rules are different from the UK’s. A US subsidiary may pay federal corporate tax and state and local taxes, which vary depending on location. Understanding these rules requires expert advice from accountants familiar with both UK and US tax systems.
The UK parent company will still prepare UK accounts and may need to report profits or losses from the US entity. To prevent being taxed twice on the same income, the UK and US have a double tax treaty that helps clarify where profits are taxed.
You will also need to deal with US sales tax, which is levied at the state level and must be collected for certain types of sales, unlike UK VAT which is national.
Documents You Will Need To Move a Business To The US
Across both UK and US systems, companies moving or expanding need a wide range of paperwork. This includes UK company records, financial statements, formation documents from the US state, an EIN from the IRS, corporate agreements, employment contracts, tax registrations and immigration documents if people are relocating. Some filings must be certified or translated and kept for regular reporting.
For Omer Tiroche Art Gallery, a London-based art dealer that is in the midst of opening n in Miami, Florida. They start by setting up a US subsidiary, registering it in New York state, and applying for an EIN. Because the gallery sells art and not physical goods in bulk, it could begin with a digital presence in the US to test demand before taking on a permanent lease.
To run the gallery from Miami, the owner might apply for an E-2 investor visa based on the investment in art inventory and gallery space. They would work with US accountants to handle sales tax on art sales and prepare both UK and US accounts.
If staff are hired in the US, employment contracts must comply with local law. Shipping artwork requires customs documentation, and insurance must cover works in transit.
Digital Businesses Without a Shopfront Are Simplified
Companies that are fully digital and have no physical shopfront are usually easier to relocate because they avoid leases, physical stock and complex customs clearance.
Setting up a US entity and selling online can be done quickly once legal and tax foundations are in place, which makes the US move smoother and less costly.
A digital business in the US can be run remotely from the UK, but if you want to have a local foothold and be based in the US, you will require the relevant company registration and visas as outlined in this article.
