Expanding into the US Market

Did you know that recent surveys indicate that nearly 70% of businesses prioritise the United States as a key target for international expansion? In this blog, we discuss our recent webinar “Going Global with Giant Group: Focus on the US" in which we share insights from our discussion with Steve Lovig, who provided valuable expertise on the complexities of expanding into the US market.

When we began our international expansion journey, the US became a top priority for many of our clients. Setting up operations in the US was one of our initial objectives, and Flex HR played a crucial role in streamlining our processes. 

Steve, Senior Strategic Human Resources Consultant at Flex HR, brings over 25 years of expertise in Human Capital Management, specialising in employee relations, rewards, recognition, and overall performance. Flex HR, a 25-year-old consulting firm, offers comprehensive HR services ranging from consulting and payroll processing to compliance training and total HR outsourcing.

" The US market can lead to big growth, but it needs careful planning and following lots of rules. With help from experts, businesses can avoid problems and do well in the US.

Here are some key insights from the discussion:

Types of company incorporation: In the US, there are three main types of incorporation: LLCs, S Corporations, and C Corporations. Each type offers distinct advantages and considerations, such as tax implications and liability.

Choosing the right state for incorporation: Selecting the right state for incorporation is crucial. Delaware is often favoured for its business-friendly environment and advanced corporate laws, coupled with no state sales taxes.

Setting up Payroll and Tax identification: Establishing a US bank account and obtaining an Employer Identification Number (EIN) from the IRS are essential steps in setting up payroll operations. Partnering with an international bank with US subsidiaries can simplify the process.

Employment considerations: When hiring employees in the US, understanding various employment classifications, such as W2 employees, independent contractors (1099), and Corp to Corp workers, is vital. Each classification has distinct legal and financial implications for employers.

State-Specific regulations: US employment laws vary significantly across states and cities. Stay informed about state-specific minimum wage requirements, paid leave laws, and other regulatory changes. California, in particular, has stringent regulations that can impact business operations.

Workplace training requirements: States like California have introduced new mandates, such as annual workplace violence prevention training. Understanding the training requirements and compliance obligations is essential to avoid penalties and ensure employee safety.

Seeking local expertise: When expanding into the US market, partnering with local advisors and HR experts can provide invaluable support in regulatory complexities and cultural nuances.

In short, expanding into the US market can lead to big growth, but it needs careful planning and following lots of rules. With help from experts like Steve Lovig and us at Giant Group, businesses can avoid problems and do well in the US.

With GIant, your contractors get the same proprietary tech, excellent customer service, and a range of benefits whilst you get complete peace of mind that we’ve got everything covered. So why not get in touch today to see how we can support your expansion into the US and beyond?!

Look out for more insightful webinars with Giant Group, and if you would like to watch the webinar, please email us at hello@giantgroup.com