Complete guide to doing business in the US in 2025, for growing startups and entrepreneurs

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US expansion overview Why expand business operations to the US? Challenges of doing business in the US How to set up a business in the US? Which states in the US are best for businesses? Business etiquette and culture in the US Tips for doing business in the US Grow your business in the US with Wise Business

Thinking of starting a business in the US, or expanding your UK business across North America?

For many UK entrepreneurs, the US presents an extremely attractive proposition - with a vast market and customer base, a shared language and culture, and many other benefits. But like expanding to any new foreign market, there will also be plenty of obstacles to overcome.

In this comprehensive guide, we’ll cover all the essentials you need to know about doing business in the US.

This includes the potential benefits, opportunities and obstacles, tips on business etiquette and corporate culture, and a rundown of some of the most business and start-up friendly states in the US.

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US expansion overview

Research is key to success when expanding to the US, to understand local culture, business etiquette and regulatory requirements.

Considerations	Description
Opportunities and benefits	Vast customer market, funding opportunities, government grants and tax incentives, shared language and culture
Challenges	Market saturation and competition, higher setup and operating costs, complex tax landscape
Most attractive states for foreign entrepreneurs	Utah, Florida and Texas

Why expand business operations to the US?

There are lots of reasons why UK businesses choose to expand their operations to the US.

One of the most obvious is the country’s vast market and consumer base, along with funding opportunities and tax incentives. And of course, there’s the shared language and culture between the US and the UK.

We’ll look at each of these benefits and opportunities in more detail below.

A vast market and consumer base

One of the most obvious benefits of expanding to the US is the sheer size of the North American region.

The US has a population of over 342 million,¹ which expands to over 617 million when you count the whole of the North American region.²

This means the potential to reach lucrative new customer bases, and make a lot of money.

The US is also one of the largest economies in the world, with a GDP of more than $27 trillion.³ And it benefits from close proximity to other major global markets such as Canada, Mexico and the Latin America (LATAM) region.

Funding opportunities

Another notable feature of the US business landscape is a large investor presence.

Over 60% of Americans invest in the stock market,³ and there are ample funding opportunities for startups and scale-ups. In fact, investment in the US by venture capital (VC) firms totalling $128.8 billion in 2023, with software, commercial products and services, pharma and biotech, and healthcare services and systems receiving the most VC funding.⁴

There’s a culture of innovation which spans the country, but particularly in cities such as San Francisco, New York and Los Angeles. You’ll also find incubators and accelerators across the US and neighbouring countries, from the MassChallenge global accelerator in Boston to the LE CAMP tech incubator-accelerator in Quebec.

Government and state-backed incentives

Alongside the numerous opportunities for funding and investment, the US also offers a large number of grants and other incentive schemes for startups.

Some are provided at federal level, such as the Small Business Innovation Research (SBIR) grant program overseen by the U.S. Small Business Administration (SBA). There’s also the Research and Development (R&D) tax credit incentive for SMEs, which can reduce a company’s tax liability for expenses related to research and development activity.

There are also state-level incentives, ranging from cash grants and property tax abatements to refundable jobs tax credits or wage subsidies - as states compete to attract the most lucrative startups.

Over in Canada, there’s also the Strategic Innovation Fund. This grants up to 50% of project costs to companies working on large-scale projects which strengthen the country’s position in the knowledge economy.⁵

The US also lays an easy pathway for foreign entrepreneurs to move to the US to start their businesses, through the E-2 visa.

This visa gives you the legal right to stay in the US and run your business there, provided you invest a significant amount of money in a US business. This means you can buy an existing business, or set up a new one from scratch - as long as it is legally registered in the US. There are also other conditions to meet.⁶

Shared language and culture

It’s always so much easier to enter a foreign market if you already understand it, and if you speak the language.

Not only is the US an English-speaking country, but aspects of British culture are also shaped or at least influenced by the US - so you shouldn’t face too much of a culture shock when moving to the US.

This isn’t to say though that there aren’t more nuanced differences on business culture and etiquette to master, as well as understanding the unique demographics, needs and demands of your company’s target market over in the US.

But it does mean you can hit the ground running, without needing interpreters, language lessons or a crash course in the country’s culture.

💡 Read our international expansion checklist

Challenges of doing business in the US

While the US may present many exciting opportunities for UK entrepreneurs and growing startups, it also has its challenges.

It’s good to be aware of these from the outset, so you know what to expect and can prepare accordingly. Let’s take a look at a few of the most common challenges UK startups face when launching in the US.

Market saturation and fierce competition

The US may be a land of opportunity, with a world-leading economy and vast consumer market. But it’s also highly saturated, so you can expect to face intense competition from both home-grown rivals and major international brands - across pretty much all industries and sectors. This means you’ll need to work hard to carve out a niche, demonstrate your USP and capture market share.

The US is also a highly litigious country, so there’s also the risk of litigation from competitors as well as customers and even the authorities if you fall foul of local laws and regulations.

Higher setup, operating and trading costs

If you’re going to expand to the US, you’re going to need a healthy start-up budget. This is because setup, operating and trading costs may be higher than you’re used to in the UK.

The average cost of setting up a business in the US is around $40,000 USD,⁷ compared to an average of £5,000 GBP (equivalent to around $6,700 USD) in the UK.⁸ However, it’s important to remember that it does vary by sector.

Staffing costs may also be higher. The average cost of an administrative assistant in the US is $22 USD an hour,⁷ whereas in the UK it’s around £10.70 GBP an hour (equivalent to around $14.34 USD).⁹ The cost of hiring alone is around $4,000 to $20,000 USD, not including salary or employee benefits.⁷

There are also changes in US trade policy to consider, as they may have an effect on your supply chain and its associated costs. With new tariffs introduced by President Trump in 2025, it could mean that sourcing supplies from outside of the US becomes more expensive.

A complicated tax landscape

As well as potentially being expensive to start and run a business in the US, there’s also a complicated tax landscape to navigate.

Business taxes in the US tend to be more complex and burdensome compared to the UK and some other countries.

On a national level, it’s relatively straightforward - as federal corporation tax is set at a flat 21%.¹⁰ However, individual states also impose their own additional taxes. There’s also deductions and credits to factor in, along with the complexity of filing tax returns.

All of this makes access to specialist tax advice a must.

💡 Learn more about navigating risks of international expansion

How to set up a business in the US?

The process of setting up an entity in the US will vary depending on which country you’re focusing on. But generally speaking, you’ll need to follow certain essential steps such as:

• Market research and planning, including developing a comprehensive business plan and conducting feasibility studies
• Choosing a suitable business structure, and registering your business with the relevant authorities
• Getting the required licences and permits
• Establishing a physical or virtual office in your chosen country
• Opening a local business bank account - you can also use an international account such as Wise Business.
• Register for taxes
• Recruit and hire employees, ensuring your follow local employment regulations
• Set up financial and accounting systems.

You may want to work with an international business consultant and/or a global company formation provider.

A specialist with knowledge of the country in question can help you navigate the process and understand the specific requirements for establishing a business there.

💡 See our full guide on starting a business in the US🇺🇸

Which states in the US are best for businesses?

The US state or even the city you choose to start your business in will largely depend on your market research, as you’ll want to go where there are the most opportunities and demand for your product or service. You may also have connections to a particular state, or already sell there.

But generally speaking, some states in the US are more attractive for UK-owned startups than others. Let’s take a look.

Utah¹¹

Known as the Beehive State, Utah has long been associated with hard work and industry - so it’s unsurprising that it is also one of the most business-friendly states in the US.

This is due to factors such as the following:

• Low corporate taxes
• A fast-growing economy
• Support for small businesses and startups
• Highly skilled workforce
• Strong venture capital community - in fact the number of private startup ‘unicorns’ (valued at over $1 billion) is nearly 70% higher than the national average.

Florida¹¹

Florida is known for its business-friendly and pro-growth policies, and its particularly good for entrepreneurs looking for opportunities in tourism, healthcare and aerospace.

Attractions include:

• Low corporate tax rate
• 0% personal income tax rate
• Growing customer base
• World-class infrastructure
• Incentives for small businesses, including workforce training grants, access to capital programs and tax exemptions.

Texas¹¹

Another state to investigate as a UK entrepreneur eyeing up US expansion is Texas. The Lone Star State is known for its business-friendly climate, especially when it comes to opportunities in energy, healthcare, technology and logistics sectors.

Other reasons why it’s a good choice for startups include:

• No corporate income tax
• Pro-business laws
• Access to a highly skilled and educated workforce
• Incentives for startups and small businesses, including tax credits, job creation grants and startup financing initiatives.

Business etiquette and culture in the US

One of the most difficult things to adjust to as a UK entrepreneur expanding to a foreign market is often the difference in culture - both inside and outside of the business world.

This isn’t too much of an issue for the US, as it shares both a culture and language with the UK.

However, you may need to bear the following in mind:

• Communication styles are often more direct and assertive in the US business world compared to the UK, which favours politeness and understatement (and lots of small talk)
• American workplaces tend to be less hierarchical and more informal, where first names are regularly used, and innovation and risk-taking are encouraged
• Work-life balance is less of a priority in US workplaces, with fewer holidays, longer working hours and more of a focus on career progression.

It’s also a good idea to do your research and get as much local advice as you can, to ensure you really understand your target market.

Tips for doing business in the US

• Do as much research as you possibly can - into local culture and etiquette, as well as business opportunities and target customers.
• You should also keep up to date with the country’s economic conditions and stability, including inflation rates and political policies which could impact your business
• Get expert advice from specialists in the country you’re targeting - this includes legal and tax advice, and support navigating local bureaucratic processes.
• You’re likely to need a local business bank account from the start - this is a key requirement in most parts of the region.
• Familiarise yourself with company registration and legal structures in the country, so you can choose the most appropriate one for your new business.

💡 You may also like our guides to doing business in Asia, LATAM and Europe✈️

Grow your business in the US with Wise Business

While having a local corporate bank account may be a key requirement in many countries, you can also use Wise Business to help grow your business in the US.

Open a Wise Business account and you can manage your company’s finances in 40+ currencies all in one place, including USD, EUR, GBP, CAD and all other major currencies.

You’ll be able to pay suppliers and staff in their own currency, as well as receiving payments in multiple currencies.

Wise payments are fast and secure (even for large amounts). Best of all, you’ll only pay low, transparent fees and always get the mid-market exchange rate.

With Wise Business, you’ll also benefit from the following features:

• Issue business debit and expense cards for you and your team
• Cashback on eligible card spending
• Generate invoices and payment links to receive money easily from customers
• Access accounting integrations, batch payments and a powerful API
• Wise Interest - which lets you earn returns on money held in GBP, USD and EUR. Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. Check out the requirements here.

Wise works almost everywhere, and you can open an account in the US, Canada, Europe and of course, the UK.

Register with Wise Business🚀

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Sources used:

1. United States Census Bureau - U.S. and World Population Clock
2. World Population Review - North America
3. Mercia - Why expand to the US? Benefits and opportunities
4. Stripe - Startup statistics you should know
5. EY - How countries in the Americas are inviting business and driving growth
6. Immigration into America - Start a Business
7. Bankrate - Average cost of starting a small business
8. Hoxton Mix - How Much Does it Cost to Start a Business in the UK (and How to Keep Those Costs to a Minimum)?
9. Payscale - Hourly Rate for Skill: Office Administration
10. GTM Global Business Expansion - Costs of Doing Business – UK Versus US
11. Shopify - 10 Best States to Start a Business (2025)

Sources last checked on date: 17-Jul-2025