Question 1

How does a UK recruitment agency open a US arm?

Accepted 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.

Question 2

What US entity should a UK recruitment agency open?

Accepted Answer

A UK recruitment agency expanding into the US commonly evaluates a US subsidiary, often an LLC for a closely held operating arm or a corporation where US equity and investment are planned. A branch can create direct UK-company exposure. The right choice depends on tax, ownership, payroll, contracts and the states where workers will be placed.

Question 3

How does a UK recruitment agency run US payroll?

Accepted Answer

A UK agency placing US workers must establish who employs the worker, run a US-compliant payroll, withhold federal and state taxes, register in the states where the work occurs and carry workers' compensation. A UK payroll provider or umbrella is not automatically authorised to perform those US obligations; use a US-capable employer or specialist provider.

Question 4

Does a UK recruitment agency need a US bank account?

Accepted Answer

A UK agency can sometimes invoice US clients from the UK, but a US operating account is usually the practical choice once it employs US workers or raises US invoices. It simplifies payroll, client ACH payments, tax remittance, workers' compensation and invoice finance. The account must belong to the entity that owns the relevant contracts and obligations.

Question 5

Which US state should a UK recruitment agency enter first?

Accepted Answer

Enter the US through the state where you have the strongest client path and niche credibility, not simply the lowest tax rate. Compare target accounts, candidate supply, pay and bill rates, licensing, workers' compensation, payment terms and your ability to visit or support the market. A narrow, well-served state beats a national launch with no density.

Question 6

Can a UK recruitment agency place workers in the US?

Accepted Answer

Yes, but a UK agency cannot simply send a worker to a US client and invoice in dollars. It must establish the worker's right to work, decide which entity or employer employs them, run US-compliant payroll where applicable, register and insure in the placement states, and handle cross-border tax and immigration advice. A US partner can reduce execution risk.

Taking a UK recruitment agency into the US

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