In the US, you can name a few popular UK-based companies and brands that have marked their presence in the US market, whether through acquisitions, or setting up subsidiaries.
Rolls-Royce and BAE Systems are among those companies whose headquarters are based in the UK, but have also set up shop across the pond, and have been doing business in the States for a very long time.
But corporations and public limited companies aren’t the only ones trying to make a show in the United States. Even some smaller businesses have taken opportunities to set up shop in the US, such as Radical Tea Towel.
In fact, one does not even have to be a US citizen to register and form an LLC in the US. And with a common language and strong economic relations, as well as an upcoming free trade agreement between the two countries, British companies will have little problem settling in their new market.
Why UK Companies Set Up Shop in the US
For British companies looking to expand internationally, the US is a great market to expand to, and offers a plethora of opportunities.
With about five times as many people in the UK, the United States has a very large potential customer base, i.e., even more people who could utilize services offered by British companies interested in working in America. And by setting up their business in the country, British companies could serve their American customer base much more conveniently, since they work in the same country as their customers, and don’t have to deal with currency exchanges and their costs, as they are paid in US dollars.
The US has great infrastructure for business to be able to set up shop in that country. The capital market in the US is much greater with more financial institutions and investors available.
The US workforce is plenty, diverse, and skilled in various fields, and are ready to work in an environment that is highly competitive, and is always striving to move forward and innovate. And the resources are abundant enough to accommodate the many foreign businesses that have a presence in the US.
Another important aspect of working in the US that will prove a boon to British companies is the fact that the two countries share the same language. Despite having slightly different spellings, the basic English language is the same across the US and UK, so communication will not be an issue.
LLC Formation in the US
Smaller foreign companies, especially for those that are based in the UK, may make good use of an LLC, as such companies provide tax leniency, and other characteristics that come from both partnerships and corporations.
However, there are some consequences that such British business must prepare for. According to the US-UK Tax Treaty, UK owners do not have a right to claim foreign tax credit on account of taxes paid to the United States, because the tax is calculated with reference to the company’s income.
For UK-based companies to set up American subsidiaries as LLCs, they must have a business name that does not conflict with an existing business name in the state they intend to set up, and must indicate that they are an LLC.
Then, they must appoint owners and officers for the new US company, as well as file articles of organization with the local state government to get registered with that state, and the required licenses and permits that allow them to conduct business in the United States. The US offices are owned by the parent British companies, but are managed by American officers.
LLC Formation Services Online
There are companies who are offering services to help businesses establish themselves in the US, especially online, such as LegalZoom and ZenBusiness. These formation service providers accommodate such companies by filing paperwork drafts on behalf of, and providing registered agents to, foreign businesses. The main benefit of looking into such online services is that they can get more information on setting up businesses abroad, in advance, before making final decisions.
LegalZoom LLC Service
LegalZoom is one example of such a company. It is an organization that is headquartered in the United States, but also has an office in the United Kingdom. Their services are priced low enough for most businesses, even smaller ones, to establish a presence in the United States.
The company also provides lawyers whose legal expertise can help companies get through with relevant laws and regulations regarding incorporation. However, the company ensures that their customers (the UK business in this case) does not have to deal with complicated, legal jargon (aka legalese), but rather, simple, plain English. Moreover, they offer forms that can be filled easily by anyone, and with no hassle.
One other service that LegalZoom provides is helping in making a will. In case a business owner might pass away in the future, they can get online help from LegalZoom in preparing a will, and LegalZoom does so in a way that is easy for the owner to understand. It is a simple case of filling in the details of the will, and the company will provide the will in the appropriate legal format.
So for many companies, LegalZoom sounds like a good way to get one’s business up and running, especially abroad. With its relatively low cost of services for businesses, as well as the variety of packages designed to accommodate businesses in every step of the way, and especially its long, established presence and brand power, LegalZoom may be an ideal choice for British companies interested in penetrating American markets. If you’re interested, you can check what experts say about LegalZoom LLC service.
ZenBusiness LLC Service
Another option to look at is ZenBusiness. Unlike LegalZoom, ZenBusiness was established more recently, in 2015. However, it has managed to get a good footing with over 150,000 businesses (most of them related to cell phone businesses), and offers similarly low cost services.
And much like its competitor LegalZoom, helps with paperwork and other items necessary for an LLC.
ZenBusiness may be an ideal contender for a general business package, with their low cost of service and establishment, a team of experts who provide guidance and advice to their clients, registered agents, and even fast filing times.
However, ZenBusiness says that it can offer similar services much more quickly, and at much lower prices than its competitor, such to the point that they have made an entire page that compares themselves to LegalZoom.
Even some premium services that LegalZoom provides, ZenBusiness offers for free within the same premium package, such as operating agreements, as well as a business website – even if it is a nonprofit organization like ShelterExchange, something which LegalZoom lacks.
Conclusion
Both ZenBusiness and LegalZoom have earned similarly great ratings among businesses, and offer similar benefits to businesses interested in registering, especially in the US. LegalZoom, however, has a dedicated UK office, which makes it easier to access for UK-based businesses.
With overall good economic relations between the US and UK, even small business owners from the UK can rest assured that America’s wealth of resources, capital, and skilled labour, will provide a boost to British companies willing to expand outside their home base. And when they do set up shop in the states, British companies can better, and more conveniently serve their American clients in the long run without having to deal with, say shipping costs if they’re shipping products across the Atlantic from the UK.