Is the U.S. Right for You? Or, Is It Better to Wait?
An owners guide to timing, traction, and what to do while you plan.
Expanding into the US is a milestone for many international companies, but it shouldn’t be a checkbox. It’s a strategic leap with real costs, real risks, and, for the right business, real upside.
So how do you know if now is the time?
Here’s the candid highlights owners should be thinking about before making the decision to expand. And why sometimes the smartest move is to wait.
First Consideration: The Economics Have to Work
“The economics need to be there. It can be expensive,” Jason Booth, CEO @ TaxStudio. “It can be expensive for compliance, for company formation, for insurance, for liability. If the numbers don’t work, that’s the biggest red flag and a sign to pause in order to redirect.”
Many owners underestimate the true cost of setting up—and maintaining—a US operation. It’s not just entity formation and a Stripe account. It’s legal, tax, payroll, hiring, and overhead that adds up fast.
“If you don’t have a bit of cushion and you make a bad hire here, it’s costly. That scenario looks like a company hires one person, sets everything up, and then the whole thing goes idle with no plan B.”
Signs You Might Be Ready
So what does readiness actually look like?
Here are a few signals to look for, none definitive on their own, but together they start to build a picture:
US traction is real: You’ve got customers in the US, or sales are growing here faster than at home.
There’s commercial pressure: US clients are asking for invoices from a US entity, or retail/enterprise buyers want to work with a US company.
You need local talent: The talent pool in your home country isn’t meeting your needs, and the right people are in the US
Sales tax or hiring triggers: You’ve hit thresholds where compliance is required, or you want to hire someone full-time in the US.
Strategic goals align: You believe (and can articulate why) being in the US will meaningfully improve growth, operations, or customer experience.
Jason also added that for some companies, sales velocity and cycle matter more than they realize:
“If I’m selling a direct-to-consumer product and I can launch before Black Friday, I might be able to hit it hard and gain traction. But if I’m B2B with a 12-month sales cycle, and I need to spend $500K before I see anything back—that’s a very different race.”
Yes, You Can Go Too Early
Jason was clear: not all early entries are bad—but some are premature, and that comes with risk.
“I kind of appreciate the people who go on gut,” he said. “They don’t have all the data, but they believe in it. And sometimes that intuition takes them farther than the numbers would have.”
But for many others, the reality hits later. The costs add up. The growth doesn’t materialize. And the structure they built starts to look more like a liability than a launchpad.
“It can be expensive to set things up. And if you don’t have the money to do it properly, or a plan to support it, it’s a red light.”
Should You Always Set Up a US Entity?
Not necessarily.
“One of the first questions I’d ask is, can you expand into the US without formally setting up a legal entity? And in some industries, the answer is yes,” Jason said.
You might be able to:
Sell to US customers under your existing foreign entity
Use platforms like Remote.com or Deel to hire without forming a company
Get paid through tools like Stripe, Brex, or Mercury without opening a US bank account
Manage currency conversion and treasury without needing a physical US presence
Jason’s advice: just because a peer company set up in the US doesn’t mean you should.
“You’re racing your own race. If you flip a coin and six common triggers all come up ‘no,’ then don’t do it.”
What Happens If You Wait Too Long?
There’s risk on both sides. Waiting too long can hurt just as much as jumping too early.
From a tax and legal standpoint, the biggest issue is exposure—especially sales tax. “We’ve seen companies that should’ve addressed US compliance years ago,” Jason said. “Now they’ve got a big exposure, and that might impact a future exit.”
But missed opportunity is a risk, too.
“Doing business in the US is competitive. If you’re not here and your competitor is, you may miss your window. And you won’t know that until you look back with hindsight.”
What If You’ve Already Expanded?
It’s common for companies to set up in the US and later realize the timing wasn’t ideal. Maybe the hire didn’t work out. Maybe the commercial plan never launched. But now there’s an idle US entity costing thousands a year to maintain.
At the same time, many other companies wait too long—and by the time they’re ready to formalize, they’re playing catch-up on compliance, scrambling to meet customer demands, or losing momentum to competitors.
The point isn’t to get it perfect. The point is to act with intention—and know what you’re solving for when you expand.
What’s the “Right Time”?
There is no one-size-fits-all formula. But there is a path to smarter decision-making.
“Get your advisors early,” Jason said. “Engage tax and legal, not to pat ourselves on the back, but to help guide you toward your particular North Star. You’re running your own marathon—and we’re just one of the coaches helping you get there. Your pace, your risk tolerance, your outcome. But if you want to make that decision at the right time, you need people around you who can help you see it clearly.”
And Yes, You Can Test the Market First
If you’re not ready to launch, don’t force it. There are ways to test the US without going all in.
Sell into the US through your home entity (just be aware of sales tax and permanent establishment risk).
Hire through an Employer of Record (EOR) platform to avoid the overhead of setting up a company.
Talk to customers, advisors, and owners already operating in the US
Use local trade and investment agencies in your home country—they often offer support and grants for outbound expansion.
Run your own research. Do your homework. Write the business plan. Tools exist, you just have to use them.
“The resources are out there. It's just a matter of how much time you're willing to put toward it.” - Jason Booth.
Final Thought: It Comes Down To Risk, Not Just Readiness
There’s no perfect moment to expand. Every decision has a tradeoff—financial, operational, and emotional. Risk tolerance matters. So does clarity. If you’re not sure, talk to someone who can help you map your race before you start it.
Before you decide, get advice that fits your business—not someone else’s.
Not every company is ready to expand today. But if the US is on your roadmap, it pays to plan early, structure matters, timing matters, and getting local input from day one can save months (or years) of backtracking.