Making the decision to expand your business into new territories, like the US, can be a daunting prospect and the key to success is preparation and planning. But knowing where to start and how to access the information your business may need to cover all eventualities can be a challenge.
We brought together a Brighter Thinking panel to help you realise your expansion ambition and help you stay on the straight and narrow when doing business in the US.
If you require any further information on any of the issues raised above, please contact Nick Farmer, international tax partner, at Menzies by email at NFarmer@menzies.co.uk or by phone on +44 (0)1784 497153 .
EARLY STAGE ENTRANTS – WHAT’S GOOD TO KNOW BEFORE YOU GO?
The basics to setting up a US based business
As a guide to your proposed business expansion, it is recommended that you ask yourself some straight-forward operational and practical questions. Some of the questions you may wish to consider include:
- Where are our customers?
- Is there a market for our product, are any changes required?
- What proximity to talent/ skills do we need?
- What local support networks are relevant? e.g. local government or trade organisations that can help provide contacts, find suppliers and customers, and even grants/funding etc.
- What State should we locate in?
- How do we find space?
- What timelines are involved and what aspects must be done early?
- How are the logistics going to work?
- Need to think forward, what are growth and exit plans?
- What type of entity should be set up and how should this be structured?
ALREADY IN THE US? – TOP TIPS TO BUILD ON YOUR SUCCESS
For those businesses already established with a presence in the US, the panel were keen to point out a number of developing challenges that trading in the US can bring. These included:
- Foreign Exchange (FX)
- Funding Growth
- Transfer Pricing