Reviewed by Joanne M. Farquharson · Last reviewed: October 19, 2026
This article is for general information only and does not constitute legal, tax, or HR advice. Consult a qualified professional for your situation.
US Location Guide: Strategic Cities for International Business Expansion
As international businesses look to establish or expand their presence in the United States, choosing the right location matters more than ever. Each US region offers different advantages for international employers. This guide looks at the most strategic locations, considering workforce trends, established business ecosystems and state-specific employment rules.
The traditional coastal business centres no longer hold a monopoly on talent and opportunity. Technology and industry hubs have grown across the country, often combining lower costs with skilled workforces and supportive local economic development agencies.
Regional Overview
The Mountain Region
The Mountain states, including Utah, Colorado and Idaho, have become popular with technology and software companies. The region offers a younger workforce, strong universities and a high quality of life that helps with recruitment. Operating costs are usually lower than in the major coastal hubs.
The Southeast Corridor
The Southeast has become a major destination for international businesses, particularly in financial services, payments and logistics. States such as Georgia, Florida and North Carolina offer lower operating costs than the Northeast. They also share the Eastern time zone, which gives the most overlap with UK and European working hours.
The Midwest Innovation Belt
The Midwest has built on its manufacturing heritage to develop strengths in automotive and mobility technology, advanced manufacturing and insurance. Michigan, Ohio, Illinois and Indiana have established international business communities, with long-standing German, Japanese and Korean investment.
The Pacific Northwest
The Pacific Northwest is known for cloud computing, software, aerospace and semiconductors. Washington and Oregon offer deep pools of technical talent. Employment costs and state requirements are higher than in many other regions, so budget carefully.
State-by-State Analysis
Mountain Region States
Utah: A Young, Fast-Growing Technology Hub
Utah’s Silicon Slopes, centred on Salt Lake City, Lehi and Provo, is home to a large cluster of software and technology companies. Utah has one of the youngest populations in the country and a flat state income tax. The University of Utah and Brigham Young University supply a steady flow of graduates.
What employers should know:
- Utah has no statewide paid sick leave or paid family leave mandate for private employers
- The Governor’s Office of Economic Opportunity supports companies relocating or expanding to the state
- The state minimum wage follows the federal rate of $7.25 per hour
Colorado: Aerospace, Technology and Clean Energy
The Denver and Boulder corridor has strong aerospace, technology and clean energy sectors. Colorado has a highly educated workforce and an outdoor lifestyle that attracts talent from across the US. The state’s Advanced Industries Accelerator Programs offer grants to companies in key technology sectors.
What employers should know:
- Colorado requires salary ranges in job postings under its Equal Pay for Equal Work Act
- Employers must provide paid sick leave and contribute to the state’s FAMLI paid family leave programme
- Colorado sets a state minimum wage above the federal rate, and Denver sets its own higher rate
Southeast Corridor States
Georgia: Payments, Logistics and Global Connections
Atlanta is a major centre for payments and financial technology, and Hartsfield-Jackson is one of the world’s busiest passenger airports. Direct flights to London and other European cities make travel to headquarters easy. Georgia Tech and Emory University provide strong technical and business talent.
What employers should know:
- Georgia has no statewide paid sick leave mandate for private employers
- The Metro Atlanta Chamber supports international companies setting up in the region
- Living costs are generally lower than in New York, Boston or San Francisco
Florida: Financial Services and Latin American Links
Florida has grown as a financial services and technology hub, particularly around Miami, Tampa and Orlando. Its location makes it a natural base for companies serving both North and South America. A multilingual workforce is a further advantage for customer-facing roles.
What employers should know:
- Florida has no personal state income tax, which can make offers more attractive to candidates
- There is no statewide paid sick leave mandate for private employers
- Florida’s minimum wage is above the federal rate and rises each year under a voter-approved schedule
Midwest Innovation Belt States
Michigan: Mobility and Advanced Manufacturing
Michigan has turned its automotive heritage into a wider mobility, robotics and advanced manufacturing ecosystem. Detroit and Ann Arbor host many international suppliers and engineering centres. The University of Michigan and Michigan State University are major sources of engineering talent.
What employers should know:
- Michigan’s Earned Sick Time Act requires employers to provide sick time to employees
- The Michigan Economic Development Corporation supports international companies expanding in the state
- Some Michigan cities, including Detroit, levy local income taxes that employers must withhold
Ohio: Manufacturing, Insurance and Logistics
Ohio combines a strong manufacturing base with a large insurance and financial services sector. Columbus, Cincinnati and Cleveland each offer distinct talent pools at lower cost than coastal cities. Ohio is within a day’s drive of a large share of the US population, which suits logistics and distribution.
What employers should know:
- Many Ohio cities and school districts levy local income taxes, so payroll set-up needs care
- JobsOhio is the state’s private economic development body and works with international investors
- Ohio has no statewide paid sick leave mandate for private employers
Pacific Northwest States
Washington: Cloud Computing, Software and Aerospace
Washington is a global centre for cloud computing, software and aerospace, with Seattle at its heart. The state attracts experienced technical talent from across the US. Salaries are among the highest in the country, so benchmark carefully before making offers.
What employers should know:
- Washington has no personal state income tax on wages
- Employers must provide paid sick leave and withhold premiums for Paid Family and Medical Leave and WA Cares
- Job postings must include a salary range and a description of benefits
Oregon: Semiconductors and Sustainable Manufacturing
The Portland area, often called the Silicon Forest, is a long-established centre for semiconductor design and manufacturing. Oregon also has strong clean technology and outdoor products sectors. Costs are generally lower than in Seattle or the San Francisco Bay Area.
What employers should know:
- Oregon employers must register for Paid Leave Oregon and withhold contributions
- Oregon’s sick time law covers most employees, with paid leave required at larger employers
- Oregon has no state sales tax, but it does levy a personal income tax
How to Choose Your First US Location
Start with your customers and the talent you need, then weigh cost and employment rules. These questions help narrow the shortlist:
- Where are your main customers and partners based?
- Which locations have the skills you need at a salary you can afford?
- How much overlap do you need with UK or European working hours?
- Which state rules on paid leave, pay transparency and local taxes will apply?
- Does your first key hire already live somewhere, and can you build around them?
Conclusion: Your Path to US Expansion
Choosing a US location requires expert guidance and a deep understanding of the market. Foothold America has guided many international businesses through their US expansion. We help them choose locations and set up efficient, compliant operations across all the regions in this guide.
Once you have chosen a state, check what you must register there before your first hire and benchmark salaries for that location. If you want to hire before setting up a US entity, an employer of record can employ your team in any state.
Contact Foothold America’s expansion experts to begin your US expansion with confidence, backed by professionals who understand the challenges international businesses face.
Frequently Asked Questions
Quick answers to the questions international employers ask most about this topic.
Do I need to register as an employer in every state I hire?
Yes, in practice. Each state where you have an employee usually needs a state tax withholding account and an unemployment insurance account. Many states also require your company to register to do business there. Our guide to where you must register explains each step. Requirements and timing differ by state, so plan registrations before your employee’s start date.
Which US states are cheapest for hiring employees?
There is no single cheapest state. Total cost depends on salary levels, state payroll taxes, mandatory leave schemes and benefit premiums. States such as Ohio, Michigan, Georgia and Utah often cost less than coastal hubs for similar talent. Compare total employment cost per role, not just salary, before choosing where to hire your team.
How much do employment laws differ between US states?
Quite a lot. Federal law sets the floor, including a $7.25 minimum wage, but many states set higher minimum wages. States also differ on paid sick leave, paid family leave, final pay deadlines, non-compete rules and pay transparency. A policy that is compliant in Texas may not be compliant in Washington or Colorado.
Can I hire in a new US state without setting up an entity?
Yes. An Employer of Record can employ staff in most states on its own US entity, handling state registrations, payroll and benefits. This lets you test a new location before committing to an entity. Foothold America’s Employer of Record service charges a flat monthly fee, never a percentage of salary.
How should I choose which US state to hire in first?
Start with your customers and the talent you need. Look at time zones, flight links to Europe, salary levels and the local talent pool for your sector. Then weigh state employment rules and incentives. Many UK and European firms pick the state where their first key hire already lives, then build around them.
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