The USA boasts the largest economy in the world, making it an ideal target market for business expansion. For UK businesses, this is particularly true because there are many cultural and ideological similarities to make expansion slightly less worrying – not to mention speaking the same language. The most notorious US business hubs include New York, Texas and California – home to many of the wealthiest companies in the world. If your company is planning to expand, why not spend some time in one of New York’s serviced apartments to gain insight into the culture and environment you are targeting. For expanding British businesses, the US can be an invaluable opportunity to diversify their risk, create new revenue streams and reach a large and potentially untapped market. But what are some of the biggest risks and factors that businesses should plan for?

Company structure

Firstly, you’ll need to ensure that you fully understand the laws and regulations surrounding incorporation and setting up a subsidiary in the US. You may choose to do this to distance your primary UK-based business legally and financially in case things don’t quite go to plan. It’s best to hire professional advisers to guide you through the process if you aren’t comfortable with the specifications yourself.

Taxation

One thing to factor into your expansion planning is corporation tax rates because these vary from state to state. You may decide your location based on target demographics, infrastructure or environmental factors, but taxation should be among the discussion when deciding which state to base your subsidiary in. 

Employment laws and regulations

Another key consideration should be employment law and regulations. You will certainly need to hire locally if you are to make a success of your US expansion, so understanding the employment system is an absolute must. The labour process is much more complicated in the US than the UK, with different employment types, legal proceedings and healthcare implications. Again, it may be worth seeking local advisers to walk you through the process.

Political and cultural issues

The US political and cultural climate is something that attracts media attention from around the world. So, it’s no surprise that this is something you need to consider if you plan on expanding into the country. Contingency planning should include reactions and responses to political uncertainty, civil unrest and other factors that can have dramatic impacts on business proceedings. In many ways, the corporate and political environments are connected – creating unique challenges for inexperienced business leaders in the US.

The post Expanding to the US? Ensure you plan for these factors appeared first on TheMarketingblog.