First Moves When Expanding Your Business to the US Market

What’s easy, what’s hard, and what you should never do when expanding your business into the U.S. from abroad. This is the first of a three part series diving into the nuances of expanding to the U.S. and our top advice to you, founder to founder.

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Expanding into the United States is a milestone for global businesses—but the journey isn’t always smooth. The U.S. regulatory environment is famously complex, and international founders often misjudge what it takes to stay compliant.

Fortunately, we’ve seen it all— we’ve witnessed the thriving success of businesses who took proactive steps as they entered the U.S. market, and we’ve witnessed those who barely survive costly cleanups. In this guide, we break down “The 3 Threes” of U.S. expansion that businesses need to be aware of:

• 3 things that are easy (with the right help)

• 3 things that are hard but necessary (and often misunderstood)

• 3 things you should never do (seriously, never)
  

3 Things That Are Easy When Growing Your Business into the U.S.

Not everything about U.S. expansion has to be difficult. Some foundational tasks can move quickly and smoothly—if you approach them with clarity and get the right support early. These are the areas where the path is well-worn, the requirements are predictable, and your decisions can be locked in without unnecessary delay.

An important note: these low-hanging fruit, “easy” elements of expanding into the U.S. are only simple with the right advisory firm on your side. Some advisory firms take a “learn as we go” approach when dealing with unfamiliar international tax issues. While that may work for straightforward U.S.-based accounts, the stakes are much higher when foreign entities enter the U.S. market. These situations require precision, not guesswork. For example, filing Form 5472 is generally mandatory when a U.S. corporation is owned by a foreign shareholder—and mistakes here can be costly. In these cases, you need a firm with real experience, not one that’s figuring it out as they go.

1. How to Form a U.S. Entity and Get an EIN

This is often the first big milestone—and one of the most straightforward. With the right documents and a clear ownership structure, forming a U.S. LLC or corporation and obtaining your Employer Identification Number (EIN) can be completed in just a few days. The key is knowing how your home country’s ownership impacts U.S. entity classification and avoiding default structures that could cause headaches later.

Pro tip: Don’t treat entity formation as a checkbox—get advice on whether your entity should be disregarded, partnership, or C-Corp before you file. A common misunderstanding is an LLC is fiscally transparent and not subject to US tax but rather its owner(s) is.

2. Choosing a U.S. State to Operate In

Too many businesses pick a state based on reputation—New York, Florida, California—without understanding how that state aligns with their actual operations. In reality, your nexus (where you have customers, employees, or property) may dictate where you need to register, collect sales tax, or file tax reports. Making a smart choice early on can simplify tax compliance, limit registration costs, and reduce risk.

Bonus: Knowing your physical footprint—like where your CEO or first hire will sit—can help avoid multi-state complexity from day one.

3. Opening a U.S. Bank Account

With your entity and EIN in place, setting up banking is typically a smooth process—especially if you’re prepared with a U.S. address and documentation. Many businesses start with platforms like Wise or Mercury to manage early transactions, but pairing that with a traditional U.S. bank is recommended for your credibility, check-handling ability, and stability with U.S. vendors.

Pro Tip: Just don’t expect the same speed and convenience you’re used to. U.S. banks aren’t built for instant transfers and branch walk-ins like you’ll find in places like Australia or New Zealand. Plan for lag time and paper trails.

Final Thoughts: Expand with Eyes Open

The early steps of U.S. expansion don’t have to be overwhelming—especially when you know where to focus. Forming your entity, choosing the right state, and getting set up with banking are foundational moves that can be handled smoothly with the right guidance.

The key is not doing it alone. When you surround yourself with advisors who understand the nuances of cross-border business, you gain more than just compliance—you gain clarity, confidence, and momentum.

Approach the process thoughtfully, ask good questions, and be willing to invest in getting the basics right. You’ve already made the bold move to expand—now make sure you do it wisely.