🇬🇧United Kingdom
🇺🇸United States

How to Expand Your UK Business
to the United States

The complete 2026 playbook for British founders — E-2 treaty investor visa eligibility, UK-US tax treaty benefits, banking setup, Delaware vs. alternatives, and your step-by-step entry roadmap.

E-2 EligibleUK nationals can apply for E-2 visa
ComprehensiveUK-US tax treaty — among best globally
DelawareTop state for UK companies expanding to US
10–21 daysTypical setup timeline from UK

How British Founders Move to the US

UK nationals have excellent options including the E-2 treaty investor visa — one of the most flexible routes for entrepreneurs. Here are your main pathways.

🔄

L-1 Intracompany Transfer

No Lottery

If you already have a UK business operating for 1+ years, transfer yourself to your new US subsidiary as executive or manager.

  • L-1A (executives/managers) → EB-1C Green Card pathway
  • Must have worked 1 year in last 3 for UK entity
  • New office L-1: 1-year duration, renewable
  • Strong pathway for established UK businesses

O-1 Extraordinary Ability

No Lottery

For British entrepreneurs with significant recognition — media coverage, awards, major funding rounds, or industry leadership.

  • No annual cap or lottery
  • Valid 3 years, renewable
  • 8 criteria — must meet 3 of 8
  • Great for serial entrepreneurs and domain experts
🏢

EB-1C Executive Green Card

Green Card

After 1+ year on L-1A, you can self-petition for a Green Card as a multinational executive or manager without a PERM labor certification.

  • No labor market test required
  • Premium processing available (15 business days)
  • No per-country backlog for UK nationals
  • Best Green Card path for UK founders
🌐

Remote (No Visa)

Works from UK

You don't need to move to the US to run a US LLC or corporation. Many British founders operate US companies entirely from the UK.

  • Delaware LLC fully operable from UK
  • US bank account accessible online
  • Hire US employees or contractors remotely
  • Visit US on business visa (ESTA/B-1) for meetings
✈️

ESTA / B-1 Business Visa

Easy Entry

UK nationals can enter the US visa-free for up to 90 days under ESTA to conduct business (not work). Good for initial setup visits.

  • No visa application — ESTA online approval
  • Can set up company, open accounts, meet investors
  • Cannot receive US-source salary on ESTA
  • 90-day maximum per visit

The UK–US Tax Treaty: Among the Best in the World

The UK-US tax convention is comprehensive and favorable. It covers virtually all types of income and provides clear tie-breaker rules for dual residents.

🤝 Key Treaty Provisions

The UK-US treaty (most recently updated in 2001 with protocols through 2003) provides excellent protection against double taxation:

  • Dividends: 5% if corporate owner holds ≥10%, else 15%
  • Interest: 0% withholding (fully exempt between treaty partners)
  • Royalties: 0% withholding (fully exempt)
  • Capital gains: generally taxed only in country of residence
  • Pension provisions: favorable treatment for UK pension transfers

🏛️ Delaware C-Corp vs. LLC for UK Founders

Most UK founders expanding to the US debate between two structures. Here's how they compare:

  • Delaware C-Corp: Best for VC fundraising. 21% US federal corporate tax. UK dividends taxed at 5% treaty rate
  • Delaware LLC: Pass-through to UK tax return. Use UK foreign tax credit for any US withholding
  • UK transfer pricing rules apply if UK parent exists
  • UK CFC rules: may tax UK resident on undistributed US profits

📊 State Tax Comparison

Beyond federal tax, each US state has its own tax regime. For UK founders:

  • Delaware: No state income tax on out-of-state income, but franchise tax applies
  • Wyoming: No corporate or individual income tax
  • New York: High tax (6.5–7.25% corporate), worthwhile for NYC market access
  • Florida: No individual income tax, growing fintech/business hub
  • Texas: No individual income tax, franchise tax on revenue

⚠️ Key Compliance Points

Common mistakes UK founders make when structuring US operations:

  • Permanent Establishment (PE) risk: too much UK management of US entity triggers UK tax on US profits
  • FATCA reporting: US LLC must report UK beneficial owners
  • FinCEN BOI: new 2024 Beneficial Ownership filing required for all US entities
  • HMRC notification: must declare overseas income and companies to HMRC

US Business Banking for British Founders

UK founders have among the best success rates with US banks. English-language documentation and FATF compliance make verification smoother.

Bank Requires SSN? Requires US Address? Success Rate (UK Founders) Notes
Mercury No (EIN only) Registered agent OK Very High Top choice. UK-owned Delaware LLCs approved routinely. No monthly fees
Relay No (EIN only) Registered agent OK Very High Excellent for multi-account setup. Easy Wise/Stripe integration
HSBC USA Sometimes Preferred High Excellent option if you bank with HSBC UK — can leverage global relationship
Barclays US Yes Yes Medium Credit card products available, limited business banking options
JPMorgan Chase Yes (or ITIN) Yes Medium Best for larger UK companies. Branch visit required but worth it for full banking suite
Wise Business No No Very High UK-headquartered so excellent for GBP/USD conversion. Great secondary account

💡 UK advantage: UK founders face fewer banking friction points than most nationalities. Mercury and Relay both have high approval rates for UK-owned LLCs. Start with Mercury for speed, then add a Chase account when you have US presence.

Best US States for UK Companies

Your choice depends on whether you're raising US VC, running a remote services business, or planning to set up a physical US presence.

🌊

New York

If your US clients and team are in NYC, incorporating here avoids foreign qualification fees. Excellent for fintech, finance, and media companies.

  • Direct access to Wall Street and media ecosystem
  • Avoids foreign qualification if operating in NY
  • Higher taxes but worth it for NYC market access

Use our AI-powered tool to get a personalised state recommendation for your specific UK business:

Try the Free AI State Selector →

Your UK → US Expansion Plan

Most UK companies complete the full US setup in 3–6 weeks. Here's the optimal sequence.

1

Choose Entity Type: C-Corp or LLC?

Delaware C-Corp if raising US VC. Delaware or Wyoming LLC if self-funded. Both can be owned by UK individuals or your UK company. Consider tax implications of each structure with a US/UK cross-border CPA.

⏱ 1–3 days
2

Incorporate in Your Chosen State

File Articles of Incorporation (C-Corp) or Articles of Organization (LLC) online. Delaware and Wyoming both allow online filing. Most formations complete in 1–5 business days (Delaware offers same-day for a premium).

⏱ 1–5 business days
3

Appoint a Registered Agent

Required for all US entities. Provides a US address for official correspondence. Most formation services include 1 year free. Cost: $50–$300/year ongoing.

⏱ Same day
4

Apply for EIN from the IRS

Non-US founders must apply via Form SS-4 by phone (international line available) or by fax/mail. Phone application to IRS can get your EIN same-day. Fax: 2–4 weeks. Mail: 8+ weeks.

⏱ Same day (by phone) to 8 weeks (by mail)
5

File Beneficial Ownership Information (BOI)

New requirement since 2024 — all US entities must file beneficial owner information with FinCEN within 30 days of formation. UK founders file as foreign nationals. Free to file at fincen.gov.

⏱ Within 30 days of formation
6

Open US Business Bank Account

Apply to Mercury or Relay online with your EIN and company documents. UK-owned companies have high approval rates. Account typically active within 3–5 business days.

⏱ 3–5 business days
7

Consider Your Visa Strategy

E-2 investor visa if you're moving to the US (consult attorney, process: 3–6 months). L-1 if you have UK entity with 1+ year trading history. Remote operation from UK if staying. Consult an immigration attorney early.

⏱ Plan 3–6 months in advance

Common Questions from British Founders

No. Brexit has no impact on your ability to form a US LLC or corporation. The UK-US tax treaty and E-2 visa eligibility are bilateral US-UK agreements that remain fully in effect regardless of Brexit. UK nationals still have full access to all US entity formation options, visa pathways (including E-2), and banking.
There's no fixed minimum, but USCIS uses a "proportionality test." For a small consulting business, $50,000–$100,000 might suffice. For a restaurant or retail business, $150,000–$300,000+ is more typical. The investment must be "substantial" relative to the total cost of the enterprise and must be "at risk" — actually committed to the business, not sitting in a bank account.
Yes. A UK Ltd can be the sole member of a US LLC or the sole shareholder of a US C-Corp. This is a common structure for UK companies expanding to the US. However, it creates transfer pricing obligations, UK CFC considerations, and requires careful intercompany agreement documentation. Work with a cross-border CPA/tax advisor to set this up properly.
If you own a US LLC (pass-through), you'll owe US tax on US-effectively-connected income even as a UK resident. The UK-US treaty provides foreign tax credits to prevent double taxation. If you own a US C-Corp, the company pays US corporate tax (21%), and dividends to you as a UK resident are withheld at 5-15% (treaty rate). You'd then report this on your UK return with credit for taxes paid.
If you need US VC funding: Delaware C-Corp is required. If you're bootstrapped and serving US clients from the UK: a Delaware or Wyoming LLC works well and keeps structure simple. If you want to expand to the US physically: consider a Delaware subsidiary owned by your UK Ltd. There's no one-size-fits-all answer — use our AI State Selector for a personalised recommendation.
Wyoming LLC: ~$60/year state fee + registered agent ($50–150/year) + US tax return (Form 1120-F or 5472 — typically $500–2,000/year with a CPA). Delaware LLC: ~$300 annual franchise + registered agent + tax filings. Total ongoing cost: $600–$2,500/year depending on state and CPA fees. Well worth it for access to the US market.

Ready to Expand Your
UK Business to the US?

Get AI-powered guidance on the right entity structure, state selection, tax optimisation, and compliance — built for British founders entering the US market.