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Expanding Business to the USA from the UK – All You need to Know

Well, you are owning a business venture in the UK which is one of the highest ease of doing business scores out of all the countries in the world. But if you are considering to grow your business and looking for the best state to incorporate your business, then the United States of America is the best choice for you.

As a matter of the fact that the United Kingdom (UK) is the largest country in the British Isles and has a long and rich history which is combined with a liberal, forward-thinking mentality, modern life, and technology. The United Kingdom has an open, business-friendly environment and transparent jurisdictions which played an important role to encourage the formation of new businesses. Due to the waves of immigration, the culture of the UK is becoming more culturally diverse and wealthy. It is now one of the world’s leading financial and services centers, with an economy which continues to go from strength to strength.

expanding business to the USA from the UK

There are approximately 2.6 million registered companies in the UK, with over 330,000 new registrations each year. The rationale behind this trend is because no permission is required to establish a business presence in the UK, although there are some rules and regulations on the use of specific business sectors and business names which may require licenses or authorization such as finance and oil exploration. Moreover, the Companies House is the critical government organization that coordinates the administration of businesses in the UK.

In fact, you are doing your business in the United Kingdom in order to gain access to affluent new customers, have the opportunity to refresh an otherwise stagnant product or service and open up the potential to do more business with other countries all across Europe. Let’s start with the details about the business structure of the UK companies in order to enjoy the maximum benefits associated with it.

The UK- Registered Business Entities

A business entity is a vehicle, a person or group of people use to carry on the activities or trade. Each of these business entities has its particular benefits and its own set of drawbacks, such as the level of bureaucracy, and limited liability which is required to run and for the ease of setup of business without any hassle. However, most of the professional entrepreneurs and business owners choose to incorporate their business as a registered company while setting up in the UK.

Below shared are various types of the UK-registered companies that you should know before setting up the business in order to steer away from the legal system problems.

  • Private Company Limited by Guarantee

Limited by guarantee companies are entirely not for the profit of the companies. In short, any profits generated in the company are reinvested into the company and are used to achieve the objectives of the company which is often charitable. The member’s liability is limited to the amount they have agreed to contribute to the company’s assets if it is wound up.

  • Public Company Limited by Shares (PLC)

In parallel to its private counterpart, PLCs exist as legal entities in their own right and the liability of the members is limited to the values of their shares and investment. The company’s shares are offered for sale to the general public through a stock exchange, and the member’s liability is limited to the amount unpaid on shares held by them.

  • Private Company Limited by Shares (LTD)

This is one of the most popular business structure in the UK, because of the potential tax advantages, the simplicity of the operating as a limited company and limited liability security. In private company limited by shares, the member’s liability is limited to the amount unpaid on shares they hold, and it is separate from those who own it in the eyes of the law.

  • Private Unlimited Company

The critical difference between the unlimited and limited companies is that there is no limit on the amount of money that shareholders have to pay if a company goes into orderly liquidation. In fact, the shareholders and founder members are solely responsible for the settling of the company’s outstanding financial liabilities, irrespective of the extent of their investment in the business entity.

Alternative Business Structures For Foreign Investors

By now that you have understood the different types of UK-Registered business entities, but instead of registering a UK company, some foreign businesses choose to establish their presence in the UK through the following:

  • A Limited Partnership

There are two types of limited partnership in the UK, firstly, the General Partners in which one or more persons are liable for all the obligations and debts of the firm. Secondly, the Limited Partners, in which members are required to contribute a sum of money as a capital, or property valued at a stated amount. In limited partner business entity, the partners are not liable for the obligations and debts of the firm beyond the amount contributed.

Business Structure UK

  • A European Public Limited Company (SE)

European legislation provide flexibility to the overseas businesses to establish a European public limited company in the UK. An SE can be registered in any country within the European Economic Area although the registered office and head office must be in the same region.

  • UK Establishment

A UK establishment is part of a limited overseas company organized to conduct business venture in the UK.

  • A Limited Liability Partnership

An LLP is an alternative corporate business structure offering the advantages of limited liability but allowing its partners and members the flexibility of organizing and maintaining their tax arrangements and internal structure as a traditional partnership.

  • A Partnership

While setting up a business venture as an in partnership, the partners have joint and several liability for all debts. To be precise, if a partner cannot pay their share of any debts, then the other partners become liable.

  • A Joint Venture

If you are looking to establish your presence in the UK, but don’t want to relocate your business here, then you can incorporate your business in the UK as a joint venture by joining a British company. Such joint ventures are generally with limited companies or as a partnership.

Why Set up a Business in the United States of America?

So, now that you have a profound knowledge about the various types of UK business entities, and you have your own business in the UK. But you are looking to expand your business in the USA to increase sales or are you mainly aiming to extend your global footprint. You need to ask yourself that is keeping ahead of the competition your most significant concern? Or perhaps you want to increase the credibility of your business? Whatever your goals are, setting up a business in the USA from the UK provides a significant business growth opportunity while boosting the international economy.

As a matter of the fact that not many nations have a characteristic which evokes such back-slapping veneration and enthusiastic like the American proclivity for business does. The discernible difference between setting up the business venture elsewhere in the world and the USA is the business insight and staggering information readily available to you. In the US, there is no niche left uncovered, no service or product overlooked. The country is fertile with data, the overabundance of free market research, information, associations, industry publications, database, statistics, and studies available to help you identify where a product or service is most suited.

Attractions for UK business

Common language, shared history, and culture, the economic and political stability of the strong underlying relationships between the Uk and the US are apparently the basis of the attractiveness of the US market. Moreover, the North American Free Trade Agreement and the active support at federal and state level for international investment make the US market even more attractive for the UK business owners. Licensing or incorporating a business in the USA are the cherries on the top of the cake for the UK business in order to set up a company. Along with this, there is a reputation that most American business people and consumers usually see the UK in a favorable and positive light.

What are the Essentials Factors that You need to know While Setting up your Business in the US from the UK?

Once you understand the attractive factors for the UK businesses for incorporating their business venture in the competitive business world of the US, the next thing that all the entrepreneurs are required to understand the economic and business opportunities of the US. No matter, the UK and the US, share many similarities, namely language and culture, but both the nations are entirely different. In order to negotiate deals and nurturing the business relationships in the US, understanding and adopting American traits will play an appropriate role for the Uk business owners. Keep on reading to explore the real gems of economic, business opportunities and other compelling factors for your business.

US Incorporation Advantages

Economic And Business Opportunity

As a matter of fact, the economic and business opportunities are the two most substantial reasons as compared to the other compelling factors like internet, celebrity, sponsorships, and advertisement for the setting up a business in the USA from the UK. The country is the most technologically powerful and most significant economy in the world, with a per capita GDP of $46,900. In their market-oriented economy, private individuals and businesses make most of the decisions, and the state governments and federal buy needed services and goods predominantly in the private marketplace.

US business firms enjoy greater flexibility than their counterparts in Western Europe and decisions to expand capital plant, to develop new products, and to lay off surplus workers. Besides, US firms are at or near the forefront in technological advances, especially in medical, computers, aerospace, and military equipment.

But at the same time, businesses face higher barriers to enter their rivals’ home markets than foreign firms face entering US markets. Long-term problems for the US comprises of inadequate investment in deteriorating infrastructure, energy shortages, rapidly rising medical stagnation of wages for lower-income families, sizable current account, pension costs of an aging population, and budget deficits.

For those who are interested in expanding business in the USA the sheer size of the country means it should be treated as a series of regional markets with varying characteristics. The United States consists of many different consumer markets, each with distinct tastes, distribution systems, purchasing behaviors, regulations, and climates. Business conduct in the US is generally conservative, courtly and concise. It is essential for information and benefits to be straightforward to your potential customer.

Moreover, the USA has a workforce of approximately 152 million, with an unemployment rate of 5% and the minimum wage varies from state-to-state, even city-to-city. Some adhere to the federal wage, whereas some reach up to $8 per hour which is also a game changer for those who are looking to expand their business.

Advertising

The second compelling factor in setting up the business in the USA from the UK is the advantages of its advertisement for promoting products and services. Well, no other country advertises and consequently consumes as much as the United States of America does. For the competitive business world, it is the capitalist guinea pig on which the rest of the world is increasingly being modeled.

US Business

In fact, there isn’t a cranny or nook in American culture which hasn’t been infiltrated and transformed into a marketing tool. From movies to internet pop-ups, it seems nothing is off limits even when you are not working in the US and want to explore the glory.

Free and Cheap Publicity

As a matter of the fact that without the marketing strategies, no business can attract their potential consumers to their business. In order to attract more and more customers in the US, drawing media coverage is a much better and effective way to influence buyers than investing in advertising space. If you want to create awareness and willing to drag media attention in order to increase the sales figures, editorial endorsements carry incredible weight in the eyes of the business owners. So, identify industry publications in the and US, send press releases, articles, guest posts, make contact with editors and enforce your attention to the reviews of your products or services.

Sponsorships

The last but not the least, the advantages of setting up the business in the USA from the UK is the opportunities of getting sponsorships. The US market attaches a lot of credibility to the non-profitable organizations and charity events that support them. And if you are operating your business as a sort of a non-profit entity, then the US would be the best choice for your prosperous business. Commercial activities can also offer appealing sponsorship opportunities with proper logo placement, media exposure and access to captive audiences.

Conclusion

By now that you have profound knowledge about the setting up a business in the US from the Uk, but still you need to be cautious of the intensely competitive and complex marketplace. It is not a secret that the United States of America and the UK share similarities in language and culture.

Just because of not knowing about the fundamental cultural and structural differences such as regulatory environment, integrated delivery systems, before attempting to gain access to the US market, as mistakes will be costly. So if you are ready to expand your business globally especially in the United States of America? Then hire the professional like IncParadise and avail of all the services of incorporating and registering your business and stay away from the legal system problems. Contact us soon!

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