UK based business opening a US office - Any advice

[Scoombs]

I run a small UK business (6 staff) which sells software and services for large global customers. We are having a few US projects where we need to have consultants performing the work, either at the customer site or remotely. Some of these contracts are for government/ITAR which requires a US national to do the work.

So far we have done everything from the UK but think it would make sense to try and recruit a US person, but I'm not sure the best way to go about this. Does anyone have any advice or know anywhere I may be able to discuss this in more detail.

I'm not sure if I can just employ a US individual and pay them from the UK? If it would be better to start a new business in the US including bank account etc and employ this person/s from there? Does it make sense to create some kind of holding company where the UK registered business and the new US registered business are components of? Does having a virtual presence in the US (The employee will work from home or on customer site) have a bearing where the US tax and legal liabilities are.

It's a bit of a minefield, the legal consequences of getting it wrong worry me.
To also confuse, our plan is to sell at some stage in the next 5 or so years, we have a specific US company as the preferred buyer, so keen to make this decision to benefit a potential sale as well.

Any experience or direction for detailed help would be appreciated.

Thanks.
Steve.

 

[Frank the Insurance guy]

If you are looking at setting up a US office/Company, you need to decide which state you want to set up in and then engage with a firm that knows all the rules and regs in that state - they will help with all the local set up, employment contracts, accounting and local laws etc.

For some reason a number of my clients have set up US Subsidiaries in Delaware! - I expect there may be some tax perks or other benefits in setting up a business there?

There are a number of these companies in the US that will hold your hand in the process and will make sure that all the relevant laws are followed etc.

You will need to budget for Workers Compensation cover, which is compulsory in most, if not all states, Medical Insurance and other insurance (eg. property).

Your UK Professional Indemnity and Directors & Officers Insurance policies should be able to be extended to include a US Subsidiary company.

 

[Scoombs]

If you are looking at setting up a US office/Company, you need to decide which state you want to set up in and then engage with a firm that knows all the rules and regs in that state - they will help with all the local set up, employment contracts, accounting and local laws etc.

For some reason a number of my clients have set up US Subsidiaries in Delaware! - I expect there may be some tax perks or other benefits in setting up a business there?

There are a number of these companies in the US that will hold your hand in the process and will make sure that all the relevant laws are followed etc.

You will need to budget for Workers Compensation cover, which is compulsory in most, if not all states, Medical Insurance and other insurance (eg. property).

Your UK Professional Indemnity and Directors & Officers Insurance policies should be able to be extended to include a US Subsidiary company.

Thank you, interesting about Delaware as that's also where the firm who are likely to buy us are based. Maybe more reason to set something up there. I will research some firms who can help. Thanks.