Choosing the Right US Base: A Guide for International VC-Backed Tech Companies
Expanding into the US is a milestone for most international tech companies—but choosing where to land can make or break your trajectory.
For VC-backed startups, the stakes are even higher: your GTM velocity, hiring strategy, and investor visibility all hinge on getting your US footprint right.
Here’s what founders and leadership teams need to know before locking in their US base of operations.
Why Your US Base Matters
Where you set up shop affects far more than your address. It influences:
- Which investors and customers you’ll have access to
- Your ability to hire (and retain) top talent
- State-level tax, legal, and compliance obligations
- Your company’s valuation, cost structure, and scalability
There’s no “one-size-fits-all,” but certain locations serve specific goals better than others.
The Most Common Choices (and What They Offer)
🟠 New York
- Strengths: Finance, enterprise SaaS, media, international connectivity
- Why Choose It:
- Access to East Coast VCs and major enterprise buyers
- Shorter time zone overlap with Europe
- Strong market for GTM and RevOps talent
- Watch Out For:
- The "Convenience of the Employer" tax rule
- High cost of living and office space
- Complex multi-state tax exposure for remote teams
🔵 California (SF Bay Area / LA)
- Strengths: Deep tech, AI, product talent, brand-building
- Why Choose It:
- Proximity to Tier 1 VCs and top-tier tech talent
- Early adopter customers in enterprise, developer tools, and AI
- Stronger brand signal in the eyes of many US investors
- Watch Out For:
- Highest income tax rates in the US (up to 13.3%)
- Intense hiring competition and salary expectations
- Higher burn rate vs. other markets
🟢 Remote-First (Texas, Colorado, Florida, etc.)
- Strengths: Flexibility, speed, cost-efficiency
- Why Choose It:
- Avoids expensive real estate and payroll tax exposure
- Allows hiring across all 50 states via EOR/PEO
- Talent is more distributed post-COVID
- Watch Out For:
- May lack investor visibility if not paired with a strong narrative
- Harder to build culture and leadership presence
- Some states have unusual employment/tax rules (e.g., NY, CA, MA)
Key Factors to Consider
1. Talent Access
- Where does the talent you need already live?
- Are you hiring engineers, salespeople, or generalists?
- Can you support hybrid/remote teams?
2. Investor Proximity & Storytelling
- Will your location signal ambition or raise red flags?
- Are your VCs concentrated in NY, SF, Boston, or elsewhere?
- Are you trying to raise US rounds in the next 6–12 months?
3. State Tax & Regulatory Implications
- What state tax rules will apply to remote workers?
- Do you want to delay forming a full entity and hire via an EOR?
- Is there a risk of economic nexus or double taxation?
4. Visa + Relocation Logistics
- Will you relocate execs or technical leaders?
- Will their presence create nexus and tax exposure?
- Do you need a specific state for L-1 or E-2 Visa planning?
A Playbook for Choosing Your US Base
If you are... Then consider...
Scaling GTM fast with a NYC-friendly product New York – close to enterprise buyers + talent
Building AI, dev tools, or deep tech San Francisco – early adopters + product talent
Hiring a lean US team via EOR Texas, Colorado, Florida – remote-friendly
Raising a US Series A in 12–18 months Consider brand signal + investor location
Sending UK execs to lead US ops Set up where they’ll be living
Final Thought
Where you land in the US shapes how fast and how effectively you scale. Choosing the wrong base can lead to legal complexity, cultural misalignment, or avoidable tax bills.
Founders should treat location as a strategic input, not just a logistical decision.
Talk to advisors, understand tax implications, and align it with your hiring and fundraising roadmaps.
You don’t need to start in NY or SF to succeed but you do need a plan.
Reach out to the In2America team and we can hep you work through your decision bearing in mind all your individual needs. You only get one chance to enter the US market. We can not only help you get that decision right but make sure you have the best chance of success by plugging you into our network of launch and scale partners.