UK → US · UK → US
How does a UK recruitment agency open a US arm?
Entity, EIN, insurance, payroll and visa considerations for a UK recruitment business expanding into the United States.
The short answer
Incorporate a US entity — usually a Delaware C-corp or a state LLC — obtain an EIN, register for unemployment insurance in each placement state, arrange workers' compensation and liability cover, and appoint a US payroll provider. Visas, not incorporation, are the long pole: L-1 or E-2 routes take months.
UK founders consistently underestimate how state-by-state the US is. There is no single national registration: unemployment insurance, workers' compensation and any employment agency licensing are per state, and placing into three states means three sets of obligations.
Banking and credit are the second surprise. A new US entity has no credit history, so factoring or payroll funding is usually the only viable working capital route for the first year, and providers will want the UK parent's numbers alongside the US entity's.
Start the immigration conversation early if a UK leader needs to relocate. L-1 intracompany transfer requires a qualifying relationship and a year of prior employment; E-2 requires treaty-investor status and a substantive investment. Either takes months, so build the US business on a US hire in the meantime.
- —Entity and EIN, then state-by-state unemployment insurance registration
- —Workers' comp, general and professional liability at US client limits
- —US payroll provider and a funding line underwritten on the UK parent
- —Visa route decided early — L-1 or E-2, both measured in months
United States
How this differs by US state and metro
The answer above holds nationally. What changes locally is registration, insurance, wage rules and how much cash each contractor consumes — these are the states and metros founders ask us about most.
New York
New York City · Brooklyn · Long Island
Register with the New York State Department of Labor for unemployment insurance and with Taxation and Finance for withholding
New York guideTexas
Dallas–Fort Worth · Houston · Austin
Register with the Texas Workforce Commission for state unemployment tax
Texas guideFlorida
Miami · Orlando · Tampa
Register with the Florida Department of Revenue for reemployment tax
Florida guideIllinois
Chicago · Naperville · Rockford
Register with the Illinois Department of Employment Security for unemployment insurance and with the Department of Revenue for withholding
Illinois guideMetro-level wage, bill rate and startup cost detail:
United Kingdom
How this differs across the UK
UK employment law is national, so the rules travel with you. Rates, buyer behaviour and the size of the cash gap do not — here is what changes region by region.
The Midlands
Birmingham · Nottingham · Leicester
Engineering, manufacturing, logistics and warehousing dominate temporary demand.
Scotland
Edinburgh · Glasgow · Aberdeen
Energy, financial services, technology and health and social care carry the contract volume.
London and the South East
London · Reading · Cambridge
Financial services, legal, technology and professional services buy the deepest contract volume, and most large buyers run PSL or MSP procurement you have to get onto before you can bill.
Manchester and the North West
Manchester · Liverpool · Warrington
Technology, digital, healthcare and logistics generate steady contract demand across the corridor.
Local questions
Does this change if I start in New York?
The national answer holds. What changes in New York is local: Register with the New York State Department of Labor for unemployment insurance and with Taxation and Finance for withholding Check the New York page before you register anything, and model the cash gap on New York pay rates rather than national averages.
Is the answer different in Texas than in New York?
The economics are the same shape; the local detail is not. In Texas: Register with the Texas Workforce Commission for state unemployment tax That affects your registration checklist and your working capital number, not the underlying principle.
Which US cities does this apply to?
All of them — but we publish metro-level bill rate, wage and startup cost detail for San Antonio, Miami, Orlando, Tampa and more, because pay rates and buyer mix vary far more between metros than between states.
Do I need a separate licence in every state I place in?
You register where you have employees and where you do business, not once nationally. Most states require unemployment insurance and withholding registration plus workers' compensation cover; a minority licence employment agencies, and some cities — New York City among them — licence separately from the state. Confirm each state and city before your first placement there.
Does this work differently in The Midlands?
The rules are UK-wide, so the compliance answer does not change. The commercial answer does: Engineering, manufacturing, logistics and warehousing dominate temporary demand.
Go deeper
How to start a staffing agency in the US
A step-by-step guide to starting a US staffing agency: entity and insurance, working capital for payroll, first niche, margin maths and the funding route that fits.
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