Expanding into the US remains something of a holy grail for ambitious UK businesses. It’s the world’s largest economy. It has deep pools of investment capital. And for tech, SaaS and high-growth businesses, it can supercharge growth in a way few other markets can.
In a recent webinar I hosted we were treated to unique perspectives on what it takes to crack the US market from David Rose, CEO at US Expansion Partners (USXP), and Allie Colman, Tax Partner at Aprio, CP’s US partner firm.
Preparation and a watertight strategy reigned supreme. Because although expanding into the US is hardly unchartered territory for UK businesses, it can’t be underestimated how much is involved.
We’ve taken the team’s insights from the session and shared what matters most below.
THE BIGGEST US EXPANSION MISTAKE?
Expanding because you can. Not because you should. One of the most common questions we hear is:
“When should we set up a US company?”
The answer is almost never “as soon as possible”.
The strongest US expansion stories usually start with demand already pulling a business across the Atlantic. Customers are buying. Revenue is growing. Market interest is building. There’s tangible evidence that the proposition resonates with US buyers.
The weaker stories often start with assumptions.
“America’s a huge market.”
“We’ve just raised funding.”
“Our competitors have a US office.”
None of those are reasons to expand.
The businesses that thrive in the US typically have clarity on their customer, proposition and market positioning long before they start worrying about corporate structures. If you haven’t cracked those fundamentals at home, crossing an ocean won’t solve the problem, and things will get much more expensive.
STOP TREATING THE US LIKE ONE MARKET
One of the most valuable themes discussed was the danger of viewing the US as a single market.
In reality, it’s 50 states. Multiple tax regimes. Different hiring costs. Different regulations. Different commercial cultures.
New York isn’t Texas.
Texas isn’t California.
California isn’t Georgia.
You get the point.
Yet many businesses build an expansion plan before they’ve properly identified where their first customers, employees or partners will be based.
That’s backwards.
Location can influence everything from talent costs and tax exposure to fundraising opportunities and operational efficiency. The right state for a SaaS business pursuing venture capital may be completely different from the right state for a services business focused on customer acquisition.
Before you worry about incorporation documents, work out where your opportunity actually exists.
FOUNDERS SHOULD LEAD THE CHARGE
Here’s an opinion that won’t be popular with every recruiter.
Your first US hire probably shouldn’t be a VP of Sales.
Many founders assume they need an experienced local operator from day one. Someone with a strong network and an impressive CV who can unlock the market for them.
Sometimes that’s the right move.
Often, it isn’t.
Our speakers highlighted a common trait amongst successful US expansion stories: founders spent significant time in-market themselves before building a local team.
Product-market fit doesn’t automatically transfer across borders.
US buyers don’t always buy in the same way as UK buyers. Messaging that lands perfectly in London can fall flat in Boston. A pricing model that works in Manchester may struggle in San Francisco.
Before scaling a commercial team, founders need to be speaking directly with customers, validating assumptions and understanding what genuinely drives buying decisions.
The businesses that win in America tend to learn first and hire second. Not the other way around.
YOU MIGHT NOT NEED A US ENTITY AS EARLY AS YOU THINK
Another myth we encounter all the time:
“We need a US company before we can start selling.”
Not necessarily.
Many UK businesses successfully test demand and generate revenue through their UK entity long before establishing a formal US presence.
In fact, for some businesses, that’s exactly how it should happen.
Early market validation reduces risk. It provides genuine customer insight. And it allows leadership teams to make better strategic decisions based on evidence rather than expectations.
Here, however, simplicity shouldn’t be mistaken for immunity.
As revenue grows, employees are hired and commercial activity increases, US tax and compliance obligations can emerge quickly and catch organisations off-guard.
Sales tax exposure, state filing requirements and permanent establishment risks can all become relevant long before a business feels “fully established” in the US.
THE COMPLIANCE ICEBERG THAT FLIES UNDER THE RADAR
Most businesses see the visible part of US expansion.
The incorporation. The banking setup. The first hire. The customer contracts.
What they don’t see is the iceberg lurking below.
Transfer pricing. Intercompany agreements. State registrations. Employment regulations. Corporate governance. Cross-border reporting obligations.
It’s not the most exciting part of scaling internationally, but it matters in a huge way.
A key discussion in the session focused on governance structures and the importance of creating clear separation between UK and US operations when a subsidiary is established.
Separate decision-making. Separate board documentation. Clear commercial agreements. Appropriate reporting lines.
It might feel administrative. But getting these foundations right can prevent major headaches when investors, acquirers or tax authorities start asking questions.
And trust us, they will.
DON’T FALL INTO TRANSFER PRICING TAX TRAPS
Let’s talk about transfer pricing.
Seldom anyone’s favourite subject, but the principle is relatively straightforward.
When you have operations in multiple countries, there needs to be a logical framework explaining where value is created, how profits are allocated and how different entities interact with one another.
Who owns the intellectual property?
Who performs the sales function?
Who takes the commercial risk?
How are services charged between entities?
The sooner these questions are addressed, the better.
Good international structuring rests on ensuring your operating model reflects commercial reality and doesn’t create unnecessary, expensive challenges later.
THE US INVESTOR MINDSET IS DIFFERENT
For high-growth businesses, this point deserves particular attention.
Many UK founders enter investor conversations with a mindset shaped by the UK ecosystem.
Efficiency. Profitability. Capital discipline.
All important things.
But many US investors are often evaluating a different set of questions.
Can this business dominate a category?
Can it achieve significant market share?
Can it scale at speed?
The cultural difference between UK and US funding environments and the importance of adapting your narrative accordingly was a recurring theme in the session.
That doesn’t mean abandoning sound financial discipline.
It means recognising that investors on either side of the Atlantic may be evaluating opportunity through very different lenses.
Understanding that distinction can be every bit as important as choosing the correct corporate structure.
THINK BIGGER. PLAN BETTER
To whittle down a milestone move to four key steps: understand the opportunity, validate demand, build the right foundations, and make deliberate, well-informed decisions at the right time.
Done well, the rewards can be extraordinary.
Done badly, it becomes a very expensive lesson.
Most of the common mistakes are avoidable – and the businesses that succeed in the US are usually the best prepared.
At Cooper Parry, we help ambitious businesses navigate every stage of international growth, from validating demand and choosing the right structure, through to tax planning, governance, transfer pricing and fundraising readiness.
So, if you’re serious about cracking America, let’s talk. We’ll ask the difficult questions before the market does, and get you ready to hit the ground running.
