The three decisions that make or break your US expansion (Before you spend)

Written by Ian Collins from Allentra

For Midlands businesses, the US can look like the most straightforward international step: huge market, familiar language, strong demand.

The organisations that execute well tend to make three decisions early - decisions that aren’t glamorous, but they prevent expensive mistakes and rework later.

Decision 1: Set the operating model early (who sells, who contracts, where risk sits)

Many companies begin with “let’s test the market first.” That’s sensible—but the test needs a defined operating model, even if it’s lightweight.

The core question is:

Who is contracting with the US customer, who is taking payment, and where does liability sit?

Getting clarity here helps you:

• Ring-fence risk and avoid accidentally exposing the UK parent to US liabilities.
• Prevent “temporary” arrangements becoming permanent by default.
• Make later steps around banking, insurance, contracting, and tax registrations far smoother.

This decision also prevents basic execution friction, for example:

• US customers or partners who insist on contracting with a US entity
• Confusion internally about whether deals are “UK revenue” or “US revenue”
• Mismatched customer terms vs how you actually deliver and support

Your US operating model - Do this simple step now

Write a one-page “US operating model” note: contracting party, payment flow, delivery/service model, and the top 3 risks you’re ring-fencing. It becomes the anchor for advisors and leadership.

Decision 2: Understand your US footprint early (nexus, sales tax, and the 50-market reality)

A common first-time assumption is that “US tax” is a single decision. In reality, the US behaves more like 50+ markets with different rules.

Two concepts matter early:

• Customs/duty (at the border, for goods)
• Sales tax and state obligations (after the sale, driven by your footprint and activity)

Even businesses that aren’t “big” can trip into obligations faster than expected because of nexus—the idea that certain activities create a sufficient connection to a state to trigger tax and compliance responsibilities.

Without getting technical, nexus can be triggered by things like:

• Sales volume into a state (economic nexus thresholds vary)
• Inventory in a state (e.g., warehousing/3PL, or marketplace-held stock)
• People or activity in a state—including “small” moves such as: a casual hire or contractor working from their home address in a state; sending staff to do installations, training, repairs, or on-site work; and repeated in-person selling activity, trade shows, or service delivery

The point isn’t to be alarmist—it’s to avoid the clean-up problem: discovering obligations after you’ve already scaled, then trying to backfill registrations, filings, and data.

What “good enough for year 1” looks like:

• Tracking where customers are and where activity occurs
• Knowing where any inventory sits (if applicable)
• Setting a simple threshold/trigger process so you don’t “sleepwalk” into multi-state exposure

Your U.S. Footprint - Do this simple step now:

Create a one-page footprint map:

• States where you have customers
• States where you have people/activity (including casual hires, contractors, site work)
• States where you have inventory/fulfilment

Then pressure-test it with an advisor before volume accelerates or join us at our forthcoming US Market Entry Roadshow event in Birmingham on 18th March where you can hear from US tax, legal and setup specialists. 

For more information and registration visit https://go.allentra.net/bg8bye

Decision 3: Protect value early (IP and commercial guardrails)

US growth tends to bring speed—and attention. The winners make proportionate early moves to protect what they’re building.

Two areas to get right early:

IP: UK protection isn’t the same as US protection. If the US is a meaningful target market, a basic US trademark strategy is often a sensible early step—ideally before you invest heavily in brand-building there.

Commercial terms: US contracting expectations can differ materially (liability allocation, warranties, remedies, enforcement). If you rely on UK-first terms without review, you may face:

• avoidable negotiation delays,
• misaligned risk, or
• terms that don’t match how you actually deliver.

A single principle helps: make your commercial promises and your operating reality match.

Protect your assets - Do this simple step now

List your “must-protect” assets (brand, key product names, core content/designs) and run a quick review of customer-facing terms for US-fit—especially around liability, warranty, and dispute mechanics.

Quick self-audit: 9 questions before you commit serious spend

Operating model

• Who contracts with the US customer today, and who should long-term?
• Where does liability sit—and is the UK parent overexposed?
• Are invoicing, payment flow, and customer terms consistent with the model?

Footprint (nexus & sales tax reality)

• Which states are we selling into—and are we tracking thresholds by state?
• Where do we have people/activity (including casual hires/contractors or on-site work)?
• Where might inventory/fulfilment sit now or later?

Protection

• Do we have a proportionate US IP plan (especially trademarks)?
• Are our key US-facing terms fit for purpose?
• Do we have an internal owner for ongoing compliance basics (even if advisers do the work)?

Get free advice - U.S. expansion Clinic in Birmingham

If US expansion is on your 2026 agenda, we’re running a half-day clinic in Birmingham on 18 March to help Midlands leadership teams map these decisions to their specific situation.

Attendees can also request a complimentary US Expansion Health Check to validate assumptions before committing major spend. For more information and registration for the event visit the website.