Planning Your 2026 US Expansion: Essential Checklist for International Businesses

As 2026 approaches, international companies are evaluating their US market entry strategies with fresh eyes. The United States remains one of the world’s largest and most dynamic markets, but successful expansion requires careful planning across legal, financial, operational, and cultural dimensions.

Whether you’re a European company eyeing your first US office, an Asian business ready to establish American operations, or a Latin American firm scaling into the North American market, this checklist will guide your 2026 expansion planning. Use it to assess your readiness, identify gaps, and ensure you’re setting up for success from day one.

✓ Market Research and Strategy

Validate your product-market fit for the US specifically. What works in your home market may need adaptation for American customers. The US market is not monolithic – regional preferences, regulations, and competitive landscapes vary dramatically between states and regions. Before committing resources, confirm there’s genuine demand for your offering.

Conduct competitive analysis of US-based competitors you’ll face. American companies often have advantages in local market knowledge, established distribution networks, and familiarity with US business practices. Understand what differentiates your offering and whether that differentiation matters to American buyers. Many international companies underestimate how competitive US markets are.

Identify your initial target geography within the US. Will you start in a coastal tech hub like San Francisco or Boston, a business-friendly state like Texas or Florida, or somewhere else based on customer concentration? This decision impacts everything from employment costs to tax obligations to talent availability. Learn more about regional considerations in our guide to US market entry strategies.

Define realistic revenue targets and timeline to profitability. Most international businesses take 18-36 months to reach profitability in the US. Budget accordingly and ensure your parent company understands this is a long-term investment, not a quick win. Undercapitalization is one of the most common reasons international expansions fail.

✓ Legal Entity and Structure

Decide on your legal entity type. Most international companies choose either a C-Corporation (for significant operations or if seeking US investment) or an LLC (for smaller, more flexible structures). Branch offices are simpler but offer no liability protection for your parent company. The right choice depends on your business model, growth plans, and home country tax situation.

Choose your state of incorporation strategically. Delaware is popular for its business-friendly laws and established legal precedent, but incorporating in your primary operating state may simplify compliance. Wyoming offers low fees and privacy protections, while Nevada provides no corporate income tax and strong asset protection. Each state has distinct advantages depending on your specific needs.

Learn more about your options: Why Delaware is popular for incorporation, Wyoming incorporation benefits, and Nevada incorporation advantages. The Delaware Division of Corporations also provides additional resources for understanding incorporation there.

Understand the “foreign entity” registration requirement. If you incorporate in Delaware but operate in California, you must register as a foreign entity in California and comply with both states’ requirements. Many international companies don’t realize they need to register in every state where they have physical presence or significant business activity. Learn more from the IRS’s state registration guidance.

Budget for formation and ongoing compliance costs. Initial setup typically costs $2,000-5,000 including legal fees, state filing fees, and registered agent services. Ongoing costs include annual reports, franchise taxes, registered agent fees, and compliance management. Foothold America’s US entity formation services handle all of this for international companies.

✓ Tax Planning and Compliance

Obtain an Employer Identification Number (EIN) from the IRS. This is your US tax ID and is required for virtually everything: opening bank accounts, hiring employees, filing taxes, and establishing business relationships. International companies can apply online, but the process has specific requirements for foreign entities. Get this done early as it can take several weeks.

Understand federal, state, and local tax obligations. The US has no federal VAT, but complex corporate income taxes at federal and state levels. You’ll likely owe taxes in multiple states based on where you have operations, employees, or significant sales. Transfer pricing documentation is critical for related-party transactions with your parent company. Review the IRS guide for international businesses.

Plan for sales tax nexus in multiple states. After the 2018 Wayfair decision, you can trigger sales tax obligations through economic activity alone -typically $100,000 in sales or 200 transactions in a state. With 45+ different state tax systems, this creates significant complexity. Budget for sales tax software or professional management of multi-state compliance.

Consult with tax advisors in both countries. US expansion has tax implications for both your US entity and your parent company. Issues like repatriation of profits, tax treaty benefits, and GILTI (Global Intangible Low-Taxed Income) require expert guidance. Poor tax planning can significantly erode the profitability of your US operations. Foothold America’s tax compliance services provide comprehensive support for international businesses.

✓ Banking and Financial Infrastructure

Open a US business bank account early in the process. Most US banks require in-person appearance by at least one authorized signer, which means planning a US trip specifically for banking. Bring your formation documents, EIN confirmation, operating agreement or bylaws, and passports for all officers. The process can take 2-4 weeks even after your in-person visit.

Research banking options for foreign-owned businesses. Major national banks (Chase, Bank of America, Wells Fargo) are familiar with international structures but can be bureaucratic. Regional banks sometimes offer better service for foreign companies. Online banks like Mercury or Brex are easier to set up but have limitations. International banks with US presence (Citibank, HSBC) understand cross-border needs but charge higher fees.

Understand US payment processing and ACH systems. US banking infrastructure differs from what you’re accustomed to in Europe or Asia. ACH transfers take 2-5 business days (slower than SEPA), wire transfers are expensive ($25-75 per transaction), and checks are still commonly used. Credit cards dominate consumer and B2B transactions, so you’ll need merchant services.

Plan for international fund transfers and foreign exchange. Moving money between your US entity and parent company involves documentation requirements, FX risk, and potentially significant fees. Consider whether you need hedging strategies for currency exposure. Some banks restrict or heavily scrutinize transfers to certain countries. Read more about FinCEN’s international transaction reporting requirements.

✓ Immigration and Visa Planning

Start visa applications 6-12 months before you need people in the US. Immigration processing is slow and unpredictable. E-2 investor visas for business owners typically take 3-6 months. L-1 intracompany transfers for existing employees take 2-6 months with premium processing. H-1B visas for specialty workers are subject to an annual lottery system with limited slots.

Determine which visa categories apply to your situation. E-2 visas work well for business owners from treaty countries making substantial investments. L-1A visas are for managers and executives being transferred from your foreign company. L-1B visas cover specialized knowledge employees. H-1B visas are for specialty occupation workers but are difficult to obtain due to the lottery. Review USCIS visa categories for your specific situation.

Understand the Visa Waiver Program limitations. Citizens of many countries can visit the US for up to 90 days without a visa for business meetings or market research. However, you cannot work or establish residence under VWP. Many international entrepreneurs mistakenly try to set up operations using visa-free travel, which creates immigration problems later.

Budget for immigration legal fees and processing costs. E-2 visa applications typically cost $5,000-10,000 in legal fees plus government fees. L-1 visas cost $3,000-6,000 in legal fees. Factor in travel costs for consular interviews, document translation, and potential delays. Foothold America’s immigration support services guide international companies through the entire process.

✓ Employment and HR Setup

Understand “at-will” employment and how it differs from your home country. Most US employment is at-will, meaning either party can terminate the relationship at any time for any legal reason. This is very different from European or Asian employment protections. You cannot simply apply your home country HR policies and employment contracts in the US—they must be adapted for American law.

Plan for significantly higher compensation costs. US salaries for comparable roles are often 50-100% higher than European or Asian equivalents, particularly in tech hubs. On top of base salary, budget for employer payroll taxes (7.65% FICA), health insurance ($7,000-20,000 per employee annually), workers’ compensation, and other benefits. Total employment costs typically run 25-40% above base salary.

Develop compliant employment policies and handbooks. US employment law is complex, combining federal regulations with state-specific requirements that vary dramatically. You need policies on at-will employment, anti-discrimination, harassment prevention, leave policies, and accommodation procedures. Many international companies underestimate the importance of proper documentation. Review Department of Labor compliance requirements.

Choose between direct hiring, EOR, or PEO structures. Direct hiring means establishing full payroll and HR infrastructure immediately. Employer of Record services let you hire US employees without setting up your own entity initially. PEO services provide ongoing HR support for established entities. Most international companies benefit from starting with EOR, then transitioning to PEO or direct employment as they scale. Explore Foothold America’s EOR services designed for international expansion.

✓ Healthcare and Benefits

Budget appropriately for health insurance. Unlike countries with national healthcare systems, US employers typically provide health insurance as a core benefit. This costs $7,000-20,000 per employee annually depending on location and coverage level. Failure to offer competitive health insurance makes it nearly impossible to recruit good employees in most industries.

Understand Affordable Care Act (ACA) requirements. If you have 50+ full-time equivalent employees, you must offer affordable health insurance or pay penalties. Even smaller employers typically offer insurance to remain competitive. The regulations are complex, and non-compliance can be expensive. Review IRS ACA information for employer obligations.

Consider offering retirement benefits like 401(k) plans. While not legally required, 401(k) plans are expected in professional environments. Many companies offer 3-6% employer matching contributions to remain competitive. Setting up and administering 401(k) plans involves compliance requirements and costs, but helps with recruitment and retention.

Plan for other expected benefits. American employees typically expect paid time off (10-20 days is standard), paid holidays (10 federal holidays exist but aren’t required for private employers), and various insurance options (dental, vision, disability, life insurance). Benefits packages are a major component of total compensation and competitiveness. Foothold America’s PEO+ services provide complete benefits administration for international companies.

✓ Office Space and Operations

Decide whether you need physical office space initially. Many international companies now start with remote operations or coworking spaces rather than traditional offices. This reduces costs and provides flexibility while you validate the market. However, some industries and customers expect a physical presence. Balance cost savings against credibility and operational needs.

Consider virtual office services for a professional address. Even if your team works remotely, you need a US business address for legal registration, banking, and credibility. Virtual office services provide a prestigious address, mail handling, and occasional meeting space without the cost of a full office. This works well for initial market entry before committing to permanent space.

Understand commercial lease obligations differ from your home country. US commercial leases typically run 3-5 years with limited flexibility to exit. Landlords often require personal guarantees from principals or parent company guarantees for foreign entities. Security deposits can be substantial (3-6 months rent). Review leases carefully with US legal counsel before signing.

Budget for business licenses and permits. Requirements vary by state, county, and city. Some businesses need professional licenses, health department permits, sales tax permits, and general business licenses. Research requirements for your specific business type and locations. Non-compliance can result in fines and operational disruptions. Check your state’s Secretary of State business resources for requirements.

✓ Bookkeeping and Accounting Systems

Establish US GAAP-compliant accounting from day one. US Generally Accepted Accounting Principles differ from IFRS used in most other countries. Your US entity needs proper bookkeeping that follows US standards for tax compliance, financial reporting, and potential audits. Many international companies try to use home country accounting systems and create serious problems later.

Choose appropriate accounting software for US operations. QuickBooks is standard for small to mid-sized US businesses and integrates well with US banks, payroll systems, and tax software. Xero is popular for international companies comfortable with cloud-based systems. Avoid trying to extend your home country accounting software to US operations—it rarely works well with US tax and reporting requirements.

Understand the difference between cash and accrual accounting. Most businesses with inventory or over $25 million in annual revenue must use accrual accounting for tax purposes. Even if cash accounting is acceptable, accrual provides better financial visibility. Make this decision early as it affects how you record transactions from the start. Review IRS accounting methods guidance for requirements.

Plan for monthly bookkeeping and financial close processes. Unlike some countries where quarterly or annual accounting is sufficient, US businesses typically need monthly financial statements. This supports tax planning, tracks cash flow, and provides information for management decisions. Budget $500-2,000 monthly for professional bookkeeping services, or use Foothold America’s accounting support included in our comprehensive services.

✓ Ongoing Compliance Calendar

Create a compliance calendar with all federal, state, and local deadlines. US compliance obligations come from multiple jurisdictions with different deadlines. Federal tax returns, state franchise taxes, sales tax filings, annual reports, business license renewals, and industry-specific requirements all have specific due dates. Missing deadlines results in penalties and potential loss of good standing.

Track quarterly payroll tax obligations and filings. Form 941 (quarterly federal payroll tax return) is due the last day of the month following each quarter. State unemployment taxes typically follow quarterly schedules. Payroll tax compliance is one area where mistakes create serious consequences—IRS penalties for late payroll tax deposits are substantial. The IRS provides a tax calendar with key deadlines.

Monitor state-specific filing requirements. Each state where you’re registered has its own annual report deadlines, franchise tax due dates, and regulatory filings. Delaware requires annual reports by March 1st. California franchise tax is due April 15th but can vary by entity formation date. State sales tax filing frequencies range from monthly to quarterly to annual depending on volume and state rules.

Plan for year-end compliance activities. W-2 and 1099 forms must be provided to recipients and filed with agencies by January 31st. Corporate tax returns are typically due April 15th (with extensions available). Benefits reporting, insurance renewals, and policy updates often happen at year-end. Build these activities into your planning so you’re not scrambling every December and January.

✓ Cultural Intelligence and Management

Invest in cultural training for managers transferring from your home country. American business culture differs significantly from European, Asian, or Latin American norms in communication style, decision-making, hierarchy, and workplace expectations. Managers who don’t understand these differences struggle and create team dysfunction. Cultural missteps are one of the top reasons international expansions fail.

Understand American communication styles. Americans tend to be more direct than many cultures but less direct than others (like the Dutch or Germans). They value action orientation and quick decisions over lengthy consensus building. Meetings focus on outcomes rather than relationship building. Small talk is expected but briefer than in some cultures. Learn more in our guide to US business culture.

Recognize American workplace expectations around autonomy and initiative. US employees expect clear goals but freedom in how they achieve them. Micromanagement is particularly poorly received in American culture. Employees expect to be empowered to make decisions within their scope rather than waiting for approval on everything. This differs from more hierarchical business cultures.

Plan for diversity and inclusion requirements. The US has strong anti-discrimination laws and increasingly expects visible commitment to diversity and inclusion. This includes religious accommodations, disability accommodations, and creating environments where diverse employees feel valued. What’s considered standard in your home country may be discriminatory in the US. Foothold America’s cultural intelligence advisory helps international leaders navigate these differences.

✓ Building Your US Team

Start with a clear organizational structure and hiring plan. Define which roles you’ll fill with transferred employees from your home country versus local US hires. Senior leadership often transfers initially to maintain company culture and knowledge, while operational roles typically hire locally. Be realistic about which positions require deep company knowledge versus US market expertise.

Prioritize hiring for US market knowledge early. Your first US hires should understand American customer expectations, business practices, and market dynamics. A great salesperson in your home country won’t necessarily succeed in the US market without significant support and adaptation. Hiring experienced US professionals accelerates your learning curve and helps avoid costly mistakes.

Develop competitive compensation packages that reflect US market rates. Research salaries for your specific roles and locations using tools like Glassdoor, Salary.com, or industry-specific surveys. Don’t try to impose home country compensation structures on US employees—you’ll lose talent to competitors. US employees expect transparent, market-competitive pay plus comprehensive benefits. Review Bureau of Labor Statistics salary data for your industry and region.

Plan for remote and distributed team dynamics. Many US companies now operate with distributed teams across multiple states or time zones. This provides access to broader talent pools and reduces real estate costs. However, it requires different management approaches, communication tools, and compliance across multiple state employment laws. Consider how your team structure supports both operational efficiency and company culture.

✓ Marketing and Sales Strategy

Adapt your messaging for American audiences. Marketing that works in your home market may fall flat or confuse US customers. Americans respond to different value propositions, messaging styles, and proof points. Invest in proper market research and potentially rebrand or reposition for the US market rather than simply translating your existing materials.

Understand the US sales cycle and customer expectations. American B2B sales often move faster than in Europe but require more proof of value. Customers expect data, case studies, and ROI calculations. Referrals and testimonials carry significant weight. The relationship dynamics differ from cultures where personal connections or lengthy relationship-building precede business discussions.

Budget for US marketing costs, which are often higher than home country costs. Digital advertising, trade shows, content marketing, and sales salaries all cost more in the US. Competition for attention is intense. Many international companies underinvest in marketing and wonder why they’re not gaining traction. Plan for 15-25% of projected revenue to go toward sales and marketing initially.

Consider partnering with US-based marketing and PR firms. They understand the local market, have established media relationships, and can help you avoid cultural missteps. While more expensive than doing everything in-house with home country resources, local expertise significantly increases your chances of successful market entry. Read our guide to business development in the US.

✓ Building Your Vendor Network

Identify and vet US-based service providers early. You’ll need relationships with accounting firms, legal counsel, insurance brokers, IT support, and potentially industry-specific consultants. Finding reliable vendors takes time, and building those relationships before you desperately need them prevents crisis decision-making. Ask for referrals from other international companies or industry associations.

Establish banking relationships beyond just your primary business account. You may need relationships with multiple banks for different services: merchant processing, business credit cards, lines of credit, or specialized services. Building these relationships takes time, and having options provides flexibility when your needs evolve. Consider community banks or regional players that may give you more attention than national giants.

Develop insurance broker relationships to manage your coverage needs. A good broker who understands international businesses can navigate the complex US insurance landscape on your behalf. They’ll help you understand what coverage you need, find competitive rates, and ensure you’re not under-insured. This is particularly valuable as requirements vary significantly by state and industry.

Create a network of professional advisors who understand international business. Look for attorneys who handle international transactions, accountants experienced with foreign-owned entities, and HR professionals who’ve supported global companies. These specialists understand both US requirements and how to bridge them with your home country systems. Their expertise prevents costly mistakes and provides strategic guidance beyond just compliance.

Why Foothold America Should Be Your US Expansion Partner

Foothold America was founded specifically to help international businesses navigate the complexities of US market entry. We’ve guided hundreds of European, Asian, and Latin American companies through every aspect of US expansion, from entity formation to hiring to ongoing compliance management.

Our comprehensive services eliminate the need for multiple vendors and consultants. We provide Employer of Record services to get you hiring quickly, entity formation and management to establish your legal presence, payroll and benefits administration to stay compliant, and cultural intelligence advisory to help your leaders succeed in American business culture.

Our expert team understands both international business practices and US requirements, allowing us to bridge the gap and translate between systems. We speak your language, literally and figuratively.

Most importantly, we provide strategic guidance beyond just tactical execution. We help you make smart decisions about entity structure, hiring strategy, state selection, and market approach. Our goal isn’t just compliance – it’s helping you build a successful, sustainable US operation that achieves your growth objectives.